Radu Hanga, Bucharest Stock Exchange: “The results of 2021 reconfirm that our development projects are going in the right direction“

“We are in a very good moment for the capital market, which recorded in 2021 multiple all-time highs on different levels, and we can say that the Romanian stock market had one of the best years in history. The results of 2021 reconfirm that our development projects are going in the right direction and that the capital market is fulfilling its essential mission as a financing platform for the Romanian economy,“ Radu Hanga, President, Bucharest Stock Exchange told The Diplomat-Bucharest.

“The excellent collaboration that Bucharest Stock Exchange has with the market participants and the investment community is an important element for increasing the access of local companies to the capital market. The very good dialogue we have with the state authorities, Government, Parliament, ASF, BNR is also essential for the present and future success of the Romanian capital market. It has become very clear that we can talk about a strong economy if we have a strong stock market.“

COMMITMENT TO PERFORMANCE | BUSINESS EVOLUTION,  PROJECTS, PERFORMANCE, FIGURES  

“Bucharest Stock Exchange and the entire Romanian capital market had a very impressive evolution in 2021. We are in a very good moment for the capital market, which recorded in 2021 multiple all-time highs on different levels, and we can say that the Romanian stock market had one of the best years in history. The results of 2021 reconfirm that our development projects are going in the right direction and that the capital market is fulfilling its essential mission as a financing platform for the Romanian economy. Last year, the total trades exceeded RON 20 billion for the first time. Also, the capital market went up by 40 percent to new all-time highs, and the companies listed on BVB posted the highest market cap ever. Last year, we registered an incresed interest from the population in investing. For example, the number of investors on the stock exchange continued to grow in 2021: at the end of September 2021 we had over 74,000 direct investors, according to FCI data, and 540,000 investors in mutual funds, according to AAF data at 11 months. In terms of financing, BVB has consolidated its fundamental role as a financing platform for the Romanian economy: 23 companies were listed on the stock market in 2021 and attracted financing of RON 234 million, and the 45 bond issues listed on BVB last year exceeded EUR 1.8 billion.“

STRATEGY & VISION |  RETHINK STRATEGY & PRIORITIES

What challenges have you faced as a CEO/ leader during 2021?

“After the uncertainties of 2020, it was normal to expect some negative scenarios. But the reality has confirmed all our positive expectations and even multiplied them. At the end of 2020, we estimated that in 2021 we would have about 20 listings. At the end of the year, we are talking about almost 70 listings of shares and bonds in 2021. It was the best year in terms of listings at BVB and we estimate that many of the trends reported last year will manifest in 2022. We expect the listing trend to continue and it is possible to see state-owned companies, such as Hidroelectrica, go public because the experience of the Romanian state with the market capital has been a positive one. We encourage the Romanian state and companies to continue to use capital market mechanisms to finance themselves.

The excellent collaboration that Bucharest Stock Exchange has with the market participants and the investment community is an important element for increasing the access of local companies to the capital market. The very good dialogue we have with the state authorities, Government, Parliament, ASF, BNR is also essential for the present and future success of the Romanian capital market. It has become very clear that we can talk about a strong economy if we have a strong stock market. Also, a major project for this yearr is the launching of the Central Counterparty (CCP). Successfully finalising this project and developing the futures market for securities and energy as well as the clearing for the spot market is a top priority for us and it would add a very important missing link for the Romanian capital market. Also, the creation of the CCP would allow more complex and sophisticated products in the Romanian market.“

KEEN ON GREEN | SUSTAINABLE, GREENER, COMMUNITY & ENVIRONMENTALLY-FOCUS

What sustainability and green-driven initiatives & projects did the company  run in 2021? Name and describe the most outstanding.

“In 2020 the Bucharest Stock Exchange has launched the first Environmental, Social and Governance (ESG)-focused initiative on the Romanian capital market, initiative that continued into 2021. More specifically, we started a collaboration with Sustainalytics, one of the global leaders in ESG research and ESG ratings. This initiave also included workshops and seminars with our issuers, introducing the ESG concepts and bringing to the front the investor expectations in terms of sustainability reporting, as this topic is gaining a larger weight in the investment decisions of investors, both local and international. In addition to this project, BVB also has a collaboration in place with EBRD with the goal of developing ESG reporting guidelines for the Romanian market. These guidelines are expected to be available in Q1 2022.

Additionally, in the last two years we made steps towards developing the market for green financing products. As an example, BVB organized a two-day workshop with IFC about green bonds as a green financing tool. In terms of results, we are happy with the first two green bonds issuances listed on the Main Market by the Raiffeisen Bank and BCR. Also, a Romanian entrepreneurial company, Autonom, listed the first issue of corporate bonds in Romania related to sustainability objectives. These three green financial instruments listed last year on the Main Market and their total value of almost EUR 400mn demonstrate the ability of investors to support companies’ plans and, moreover, their orientation towards the sustainability component of any business.”

DIGITAL DNA  | GRASPING TECH, DIGITAL INNOVATION, CUSTOMER -DRIVEN, BUILDING NEW BRIDGES

“Bucharest Stock Exchange is in its essence a tech company and we make every effort to ensure the most efficient functioning of the market, as well as we develop new projects for the benefit of all those present in the capital market, brokers, investors, listed companies. For investors, we have launched in April 2021 BVB Research Hub, a platform that we support and where teams of analysts of local or international intermediaries publish analysis reports for shares listed on the Stock Exchange. We also focus all our efforts on promoting our financing mechanisms among Romanian entrepreneurs through the Made in Romania program. The positioning of the Bucharest Stock Exchange as one of the main financing channels for Romanian companies is one of our goals, and the results from 2021 confirm us that we are on the right track.”

2021 IN 3 KEY WORDS

“Impressive, Dynamic, Revealing”

2022 IN 3 KEY WORDS

“Continuity, Growth, Sustainability”