“Romania is a dynamic Eastern European economy and collaborations between local and international stakeholders continue to present new opportunities,” according to Adrian Tanase, chief executive officer of the Bucharest Stock Exchange (BVB).
Indeed, the Romanian economy presents a compelling investment opportunity. Romania’s accession to the European Union in 2007 has ensured a stable regulatory environment with established legal frameworks. The economy is on an upward growth trajectory, offering investors access to promising companies. Romanian companies offer attractive valuations for early investors and international interest in Romania’s potential is growing.
BVB is in the process of transforming Romania’s capital markets. With new infrastructure, education and good governance, BVB is on an ambitious journey.
“With increased international visibility and more companies and investors coming to the market, we are moving in the right direction,” Tanase said. “We have an invigorated capital market and a dynamic local institutional investment community. Government strategies are aligning to build capacity in the financial sector and this will undoubtedly lead to a healthier investment climate.”
BVB offers a unique opportunity for foreign investors seeking diversification and access to a promising Eastern European market. Foreign investors currently account for about 26% of trading activity and BVB continues to prioritize investor confidence by adhering to strict regulations and transparency.
To support the growth of local entrepreneurial businesses, in 2017 BVB created the BVB Arena program as an ecosystem for financing, training and cooperation. Over 20 companies have already engaged with the program and financing rounds have amounted to almost €240 million.
More environmental, social and governance bonds are being issued by Romanian banks, companies and municipalities. Since 2011, the 12 bond issues containing an ESG component amount to more than €1.7 billion.
BVB has established partnerships with Sustainalytics, now part of the Morningstar Group, one of the global leaders in the ESG research and rating segment, and IFC, a leader in the ESG space.
“Thanks to the country’s economic growth and political stability, Romania continues to be viewed in a positive light by the international community,” Tanase said. “In line with confidence in the economy and trends in external markets, BVB will continue to contribute to Romania and provide returns for investors.”
Last summer’s public offering by Hidroelectrica was worth almost €1.9 billion and proved to be the largest in Europe in 2023. The event had a noteworthy impact on BVB’s international reputation as it was set during a complicated period of high inflation, high-cost money and geopolitical tensions.
“Increasing liquidity is at the epicenter of our strategy and we continue to innovate while reaching out to new issuers and local and international investors. Romania has a robust framework for growth and we are eager to engage with international investors, enhance our market visibility and strengthen ties with our friends in Japan, Asia and the rest of the world,” Tanase concluded.
