Clearstream Extends Offering in Romania

Clearstream will offer settlement and custody for municipal bonds in Romania.
By Janet Du Chenne(59204)
Clearstream will offer settlement and custody for municipal bonds in Romania.

The move follows a recent change in legislation, which allows the international central securities depositories to offer this service in the country through an indirect link to the Depozitarul Central, the Romanian CSD, via its custodian Bancpost. The indirect link complements Clearstream’s direct link to the National Bank of Romania.

The city of Bucharest will issue the first municipal bond to be accepted in early May by for a total of up to €500 million.

Anne-Pascale Malréchauffé, head of Network Management at Clearstream, says: “The city of Bucharest’s issuance is a strong signal that this market has great potential and we look forward to supporting further issuances. There is plenty of scope for future service upgrades concerning the new indirect link which will enable us to offer our customers an even better customer experience in this market.”

The ability to offer investors on the Romanian market a bond listed on the Bucharest Stock Exchange and settled through the local and international CSDs will enable a more rapid development of Romanian capital markets added Dana Mirela Ionescu, head of Investment Banking at Raiffeisen Bank Romania.

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