OREANDA-NEWS. A recent change in regulation now enables Clearstream to offer settlement and custody for municipal bonds in Romania. Clearstream is the first international central securities depository (ICSD) 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 first municipal bond to be accepted will be issued in early May by the city of Bucharest. The bond will be issued in Romanian New Leu (RON) and will be listed on the Bucharest Stock Exchange. There will be several tranches with different maturities, for a total of up to EUR 500 million.

Anne-Pascale Malréchauffé, Head of Network Management at Clearstream, commented: “We are delighted to extend our service offering in Romania to settlement and custody service for municipal bonds. 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.”

Liviu Mitroi, Executive Manager Global Markets at Bancpost, stated: “We are honoured by Clearstream’s decision to select Bancpost as local custodian for settlement and custody services for Romanian municipal bonds that are eligible at the central securities depository Depozitarul Central. Bancpost has been a reliable partner in Romania for Clearstream for over five years and we are confident that our collaboration will continue to be successful.”

Dana Mirela Ionescu, Head of Investment Banking at Raiffeisen Bank Romania, added: “We are pleased to be in a position to offer investors on the Romanian market a bond listed on the Bucharest Stock Exchange that is not only settled through the Romanian CSD but also through Clearstream for the first time. This opens the door to new capital for the domestic market which will enable a more rapid development of Romanian capital markets.”

About Clearstream
As an international central securities depository (ICSD) headquartered in Luxembourg, Clearstream - a Deutsche Börse Group subsidiary - provides the post-trade infrastructure for the Eurobond market and services for securities from 54 domestic markets worldwide. Clearstream’s customers comprise approximately 2,500 financial institutions in more than 110 countries. Its services include the issuance, settlement and custody of securities, as well as investment fund services and global securities financing. With more than EUR 13 trillion in assets under custody, Clearstream is one of the world’s largest settlement and custody firms for domestic and international securities.