The European Bank for Reconstruction and Development (EBRD) confirmed that it did not invest in Hidroelectrica's IPO because its strategy targets companies that use financing from listing offers for development, as opposed to exits – as it was the case of Hidroelectrica where Fondul Proprietatea sold its 20% stake.

The Bank, however, confirmed the positive effects of Hidroelectrica's IPO for the local stock exchange.

"The IPO was a landmark transaction for Romania and the region, with a strong positive impact on the market capitalization of the Bucharest Stock Exchange. We hope that the presence of the retail tranche will contribute to improving liquidity on the stock exchange, an important criterion for Romania to be upgraded to emerging market status by MSCI. We believe that the success of Hidroelectrica's IPO will increase entrepreneurs' confidence to list on the Bucharest Stock Exchange, with multiple benefits for the market in general," the EBRD said in response to Ziarul Financiar's inquiry.

iulian@romania-insider.com

(Photo source: Facebook/Hidroelectrica)