Bulgaria and Romania's central depositories signed a link agreement that would allow dual listings of companies from the two countries on both stock exchanges, officials of the two bourses said.
Several Bulgarian companies have already expressed interest in a possible listing on the Romanian bourse, Vasil Golemanski, CEO of the Bulgarian Stock Exchange, told a press conference held in Sofia on Tuesday after the signing ceremony.
"This [agreement] will allow dual listings of Bulgarian issuers on the Romanian market. It will increase the investor base of the Bulgarian issuers," Romanian central depositary director general Adriana Tanasoiu told reporters. "It will make them accessible to more investors, it will lower their cost of capital and will increase the attractiveness of the Bulgarian issuers," she added.
The two bourse operators, the Bucharest Stock Exchange, BVB and the Bulgarian Stock Exchange (BSE), are considering creating a joint share index. According to Georgi Balgarski, member of BSE's management board, the index could track 10 Romanian and five Bulgarian companies, as BVB's turnover is 10 times bigger.
Six indices track companies listed on the BVB, compared to four on BSE. With 105 listed companies, the total market capitalisation of the Bucharest bourse stood at some 18 billion euro ($23.1 billion) on Monday, compared to 4.8 billion euro on the Sofia bourse.