Nuclearelectrica becomes the first majority state-owned Romanian company listed on BVB that is included in the FTSE Russell indices dedicated to Emerging Markets. For the first time in history, the Romanian capital market is included, starting from September 21st, 2020, in the Emerging Markets indices – new investment funds that manage billions of euros will be able to invest in the companies listed on the Bucharest Stock Exchange (BVB), a move that was previously impossible due to the restrictions generated by the country’s former Frontier Market status.
The decision came after Romania had been retained on the Watch List for three consecutive years, and it will allow the Romanian capital market and economy to absorb new funds in the coming years.
“Nuclearelectrica (SNN) wants stability in the first place and based on this stability a gradual increase”, said Cosmin Ghiță, CEO of Nuclearelectrica. “This is the very premise from which I started in 2017 and based on which we constantly build in order to position the company as advantageous as possible, to bring added value and earnings to our shareholders and investors. We are accountable for the wellbeing of the company and equally for the wellbeing of our investors. Our financial results, long-term strategies, perfectly contextualized to the European and international sustainable growth environment, and by association the investment projects, are eloquent for SNN in 10, 20 or 30 years from now: a strong company, able to withstand the external dynamics, and we have already seen what sudden dynamics are.”
Besides Nuclearelectrica, Banca Transilvania – the most traded company from BVB – has met the necessary criteria to be included, starting from September 21st, in the All-Cap indices dedicated to Emerging Markets according to the classification of the global index provider FTSE Russell. The contribution of the two companies was decisive for the upgrade of the entire market, as the promotion took into account the presence of companies in the All-Cap indices (which include Large, Medium, and Small Capitalization companies, excluding the Micro-Sector).
According to the FTSE Russell classification, the first Romanian company that benefits from the market upgrade is TeraPlast. Consequently, starting from September 21st, TeraPlast becomes the first Romanian company included in the FTSE Global Micro-Cap index. The Micro-Sector is not taken into account by the global index provider in the decision regarding the country upgrade, but the inclusion of the Romanian companies in these indices can contribute not only to enhanced visibility but also to attracting capital from fund managers.
Consolidating the Emerging Market status
“Romania has a new highway that connects us with the whole world, not only with Europe”, said Radu Hanga, Chairman of the Board, Bucharest Stock Exchange. “Following the promotion to Emerging Market status, this highway represented by the capital market will facilitate the circulation of cash flows to and from anywhere in the world. Continuing the listing process ensures that opportunities are seized and that the capital is accessed in a fast and efficient manner.” At turn, Adrian Tănase, CEO of the Bucharest Stock Exchange said that there were several candidate companies that could meet the liquidity criterion at the moment. “The consolidation of this newly won status can be achieved only by increasing the number of Romanian companies included in the Emerging Markets indices, and this means that we will have more valuable and stronger Romanian companies, which will contribute to the development of the Romanian economy.”