Project Carol

cancelled

Project Description This PSD relates to a historical Bank project approved some years ago, and does not represent a new approval, or allocation of new funds.  Disclosure of this PSD was deferred in accordance with the transparency framework in place at the time, but due to an administrative oversight, was not subsequently disclosed In 2014, the Bank approved acquisition of an equity stake in the Bucharest Stock Exchange (BSE), then the largest exchange operator in south-eastern Europe. Project Objectives The transaction was expected to have a wider local capital markets impact through a combination of EBRD’s proposed equity investment, and various initiatives delivered by the legal transition team including (i) improvement of the BSE Group corporate governance, (ii) fostering legal and regulatory reforms in the country, (iii) investing in and fostering local currency fixed-income and equity issuances, and (iv) contributing to removal of key barriers to the development of the Romanian capital markets. Transition Impact The project was anticipated to contribute to improving the corporate governance of BSE and its subsidiaries by improving the effectiveness of BSE’s Board and its committees, assisting in the dialogue between shareholders and other stakeholders, and expansion of local capital markets, including by participating in local currency fixed income and equity issuances. Additionality The Bank’s additionality was derived from its reputation in the region, particularly given similar historical investments, and the existence of strong relationships with local authorities which were anticipated to assist in the delivery of legal reforms necessary to deliver the transaction’s anticipated transition impact. Environmental and Social Summary The project was Categorised FI, and as BSE is a market place for trading rather than a funds provider, the environmental and social risks associated with the activities of BSE were limited and no specific environmental and social risk management requirements were required. Technical Cooperation n/a - none