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October 5, 2022

Appointment of the consortium of the investment banks for the initial public offering of Hidroelectrica (“IPO”)

Franklin Templeton International Services S.À R.L., in its capacity as Alternative Investment Fund Manager and sole director of Fondul Proprietatea SA (the “Fund”), last Thursday informed shareholders and investors that the Fund and Hidroelectrica selected the consortium of investment banks in relation to the IPO, which is composed of international, regional, and local investment banks.

The role of the selected investment banks in the IPO process is to recommend the optimal structure of the transaction, promote the equity story of Hidroelectrica among local and international investors, place securities in the IPO, as well as assist with the listing process.

On this occasion, Ilinca von Derenthall, Chairperson of the Board of Nominees said: “The appointment of the investment banks is a key milestone, and we are very pleased that it has been reached in connection with Hidroelectrica’s IPO. We firmly believe that the IPO and the subsequent listing of Hidroelectrica will bring significant benefits to the Romanian capital markets and Romania as a whole, as it has great potential to attract significant domestic and foreign investors for the Romanian leading electricity production company, one of the key companies in the Romanian energy sector. We are encouraging all stakeholders to continue their collaboration to ensure that both the IPO and the listing is completed without delay.”

Commenting on this topic, Johan Meyer (photo), CEO of Franklin Templeton Investments Romania, and Portfolio Manager of Fondul Proprietatea said: “The selection of the investment banks marks an important step forward, as part of the preparation for the IPO and listing of Hidroelectrica. We appreciate the stakeholders’ support thus far and look forward to collaborating with the consortium of investment banks as we continue with the preparation process for the IPO and the listing. We hope to be able to complete this landmark transaction as soon as practically possible.”


BVB’s Tanase: Hidroelectrica’s listing would be a big plus in process of promotion to emerging market status by MSCI



Hidroelectrica’s listing would be a big plus in the process of promotion to the emerging market status by MSCI, the Romanian market still having quantitative problems, Adrian Tanase, general manager of the Bucharest Stock Exchange (BVB), explained on Monday at the 5th edition of the Capital Market Forum, organized by Financial Intelligence.

“There are three companies or even four that are close to meeting the quantitative criteria, but at MSCI we need more consistency in meeting these criteria…. We might expect that in a very short period of time we will be included on a Watchlist because it goes the same way as at FTSE Russell, to be included in a Watchlist for promotion and after that to be promoted to emerging market status by MSCI (if Hidroelectrica is listed, ed. n.). So the listing of Hidro would be a big, big plus in this whole process,” Adrian Tanase said, according to Agerpres.

He said the Stock Exchange wants to strengthen this emerging market status, to be increasingly companies included in the FTSE Russell indices and to carry out an upgrade by the second emerging market index provider, MSCI.

Adrian Tănase added that for promotion it is necessary to meet the quantitative criteria and currently Romania does not have large enough companies and liquid enough for promotion.

He showed optimistic about the evolution of the Stock Exchange and said that when conditions normalize in terms of specific risks, the listing market could reactivate. Even under these conditions, this year there were 10 listings on the AeRO market, but also 20 bond issues.


















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