BUCHAREST, June 27 The European Bank for Reconstruction and Development (EBRD) has invested more than 320 million lei ($99.41 million) to acquire an 8.6 percent stake in Romania's electricity provider Electrica S.A. in an initial public offering.
The leftist government agreed to the IPO, Romania's first so far this year, under a 4 billion euros aid deal led by the International Monetary Fund.
"Our participation demonstrates the EBRD's commitment to supporting the government's plans for increased privatisation of the energy sector," Nandita Parshad, Power and Energy Director at the EBRD, said in a statement.
Parshad said the EBRD will work with Electrica to align its corporate governance with international standards: "This will provide additional comfort and confidence to potential future investors."
The EBRD is the largest institutional investor in Romania. It invested about 6.7 billion euros across 360 projects in the European Union member state so far. ($1 = 3.2190 Romanian lei) (Reporting by Radu Marinas)