The Romanian government could raise between RON 12 billion and RON 18 billion (EUR 2.4 billion–EUR 3.6 billion) without losing control of key state-owned enterprises by selling additional stakes, according to an analysis released by CFA Romania. The report highlighted electricity producer Hidroelectrica, natural gas company Romgaz, and nuclear power company Nuclearelectrica as candidates for such transactions, Ziarul Financiar reported.
CFA Romania suggested that the sales could be conducted rapidly through accelerated private placements or secondary share offerings, involving 5–10% of share capital.
The analysis pointed to private pension funds as potential buyers, noting their growing demand for diversification amid heavy exposure to state debt.
“The pension funds have capital, they have appetite, but they need investment opportunities. The state has large companies, but quite a few are unlisted. It is quite obvious that it is a match made in heaven. We need each other,” said Cosmin Paraschiv, member of the CFA board of directors, at an event organised by CFA Romania at the Bucharest Stock Exchange.
Private pension funds Pilon II and Pilon III have become the largest institutional investors in the local capital market, with assets of about EUR 30 billion. Roughly one quarter of these assets are already invested in Romanian equities, with the remainder primarily in government securities.
Industry projections indicate that pension fund assets will double by 2030, supported by monthly contributions of about EUR 150 million. While equity exposure currently stands at around 25%, CFA Romania argued that demand for listed investments remains high and will continue to expand as fund assets grow.
The organisation also recommended the listing of new companies, stressing that publicly traded firms tend to improve profitability through higher transparency and more efficient management.
“Currently, the bulk of portfolios are placed in government securities, but even with a relatively low exposure to equities, the demand for funds for listed investments is considerable,” CFA Romania stated in its analysis.
iulian@romania-insider.com
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