Bucharest
10 December 2014
Reporter: Stephanie Palmer

BNY Mellon supports new rules in Romania


BNY Mellon has welcomed new rules that make it easier for foreign investors to buy securities in Romanian companies.

The Romanian Financial Supervisory Authority (FSA) agreed to allow Romania-based companies to issue depository receipts (DRs) in other European Union (EU) states and to utilise DRs for non-capital raising technical listings and secondary public offerings.

The decision was made last year, and by November 2013, Romania’s largest natural gas producer and supplier, Romgaz, listed its global depositary receipts (GDRs) on the London Stock Exchange (LSE).

In July this year, power supplier and distributer, Electrica also registered on the LSE.

Christopher M. Kearns, CEO of BNY Mellon's depositary receipts business, said: "The new FSA rules will help Romanian companies diversify their investor base and provide more opportunities for foreign investors to participate in an exciting growth market."

The Romanian economy is thought to be growing at four times the rate of the eurozone, and the country is rich in energy reserves.

Kearns added: "As depositary bank for both Romgaz and Electrica, BNY Mellon is at the forefront of this evolution in the market."

The new rules from the FSA follow a similar move from the Taiwan Financial Supervisory Commission to allow for a non-capital raising depositary receipts. BNY Mellon was also active in developing new guidelines for Taiwan, and hopes to attract greater foreign investment to the jurisdiction.

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