Translated version of this PSD: Romanian
The EBRD participated in the Initial Public Offering organized by Electrica SA, for the issuance of new shares representing 105 per cent of the company’s share capital and floated on the Bucharest Stock Exchange as well as on the London Stock Exchange, via Global Depository Receipts (“GDRs”).
The proceeds will be used by the company to fund an investment plan targeting the development of the distribution network through the installation of smart grid infrastructure, improving operating efficiencies and refurbishing its existing network infrastructure.
The EBRD’s participation in this IPO was in line with the Romanian Country Strategy, the Energy Sector Policy and the Local Currency and Capital Markets Development Strategic Initiative, with the following Transition goals:
- It sets standards for corporate governance and business conduct, as a Corporate Governance Action Plan (“CGAP”) aimed at strengthening the corporate governance of the company. This was undertaken by the company through the signing of a Framework Agreement with the Bank.
- It increases private ownership, as this is the first majority privatization of a state-owned company via the stock exchange.
- It develops the local capital markets as the IPO contributes to the liquidity and depth of the Bucharest Stock Exchange.
Electrica S.A. is the holding company of a group which distributes and supplies electricity to residential and industrial consumers in the geographical area of Northern Muntenia, and Northern and Southern Transylvania.
The Bank participated with €75 million of the total IPO value of €444 million. The EBRD now holds approximately 8.6 per cent of the company.
RON equivalent of €75 million.
Categorized B. An environmental and social due diligence (ESDD) was undertaken of the Project as part of the privatization process by an independent consultant.
The ESDD confirmed that the Company has the institutional capacity to implement the Bank’s Performance Requirements (PRs) and is compliant with National legislation. The ESDD has identified additional institutional strengthening in order to implement best industry standards and practices. This includes among others, developing a more robust Environmental, Health and Safety (EHS) management system to cover all operations (including contractors) as well as develop a Corporate Social Responsibly (CSR) program to attain Global Reporting Initiative (GRI-G4) standard by 2015. The Company will also develop a stakeholder engagement plant and further strengthen it human resources procedure in line with the Bank’s Performance Requirements 2. This has been included in an Environmental and Social Action Plan (ESAP) agreed with the Company.
The Bank will monitor the implementation of the ESAP.
Ioan Rosca, CEO
Tel: + 40 21 2085 002
Fax: +40 21 2085 004
Alexandra Borislavschi, Managing Director of Corporate Finance and Governance
Tel: + 40 21 2085 030
Fax: + 40 21 2085 084
For business opportunities or procurement, contact the client company.
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Public Information Policy (PIP)
The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP