Romania’s goal is to reach out to international investors who wish to increase their presence on its capital market, Bucharest Stock Exchange (BVB) CEO Ludwik Sobolewski says.
The European Bank for Reconstruction and Development (EBRD) hosted a conference at its headquarters in London on Friday, in collaboration with BVB, to discuss the development of Romania’s capital markets.
‘Romania is a rising tiger of Central and Eastern Europe. Our goal is to reach out to international investors willing to increase their presence on our market and to discuss how Romania can become a fully-fledged member of the emerging-markets family. We also want to hear from the investors about any challenges they might be facing. This is an important dialogue,’ Sobolewski said at the conference, as quoted in a media release of the EBRD.
According to Agerpres, indexes such as Morgan Stanley Capital International’s (MSCI) currently qualify Romania as a frontier market; the country aims at getting the emergent market status by 2017. It would allow drawing more investors, as many fund managers make their stock buying decisions based on MSCI’s indexes. Moreover, these indicators are monitored by investors who manage global assets worth 9,500 billion dollars.
‘We welcome Romania’s ambition to be upgraded to emerging-market status and we are proud to be able to support its comprehensive reform programme. Today’s event is a proof of the EBRD’s long-term commitment to the country and to strengthening its capital markets,’ declared Jean-Marc Peterschmitt, Managing Director for central and south-eastern Europe at the EBRD.
As part of its efforts to help the development of Romania’s capital market, the EBRD has acquired a 4.99 per cent stake in the Bucharest Stock Exchange and has invested in the recent initial public offerings (IPOs) of gas and electricity distributors Romgaz and Electrica. Moreover, the EBRD is working with the authorities to provide advice and support for reforms, and is encouraging Romanian businesses to tap into local capital markets.
Developing capital markets and local currency lending is among the EBRD’s priorities in the country. To date, the Bank has invested about ?7 billion across 368 projects in Romania.
Bucharest Stock Exchange makes progress towards obtaining emerging market status
The Romanian Government will continue to sell state assets this year, which will help increase the volume of transactions on the stock exchange and will allow Romania to reach its objective of obtaining the emerging market status, the Bucharest Stock Exchange (BVB) CEO Ludwik Sobolewski has told Bloomberg.
Romania is currently classified as frontier market by Morgan Stanley Capital International (MSCI). Obtaining the emerging market status would allow the Romanian market to draw more investors because some fund managers buy shares based on the MSCI indices. Also, these indices are monitored by investors who manage global assets of 9,500 billion dollars.
According to Ludwik Sobolewski, the BVB is ready to host up to four initial public offerings this year, given that it is trying to include Romania on the list of monitored markets to receive the emerging market status.
‘We are already meeting the criteria. All our efforts are directed towards inclusion on the list of monitored markets, if not this year, then next year. Meanwhile, we want to have a bigger market for shares, which will be fueled by the privatization programme,’ Sobolewski said.
Ludwik Sobolewski added that the BVB has simplified the trading procedures and facilitated access to the market for companies, in a bid to become a trading hub in Central and Eastern Europe. However, the BVB has a market capitalization of 19 billion dollars, almost nine times lower than that of the Warsaw Stock Exchange, writes Agerpres.