Romania’s Future Sovereign Investment Fund to create IPOs

The Sovereign Investment Fund will be beneficial for Romania, as it will have the capacity to create initial public offerings (IPOs) to raise funds for new investments, Greg Konieczny, CEO and portfolio manager of Fondul Proprietatea said Tuesday at a press conference.

Konieczny welcomed the initiative to create the Sovereign Investment Fund, and expressed hope that it will minimize the interference of the political sphere in private businesses. Also, he said he believed the ministries will thus be able to focus on strategies and policies for each different sector.

“This Fund will probably lead to a more responsible governing at board level, the executive management. It will be beneficial for Romania, because it will create IPOs and will be a way to raise funds for new investments,” Konieczny said.

On April 21 Romanian PM Sorin Grindeanu announced that the draft law on the establishment of the Sovereign Investment Fund and the strategic project plan are to be submitted to the public debate and transmitted to Parliament for adoption.

The Romanian government decided on February 9 to adopt a Memorandum on the Establishment of the Sovereign Development and Investment Fund (FSDI).

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According to the memorandum, the FSDI will aim to develop and finance cost-effective and sustainable investment projects as a financing mechanism that will identify and materialize investment opportunities with an impact on sustainable economic development and job creation. The Romanian State, through the Ministry of Economy, will be the sole shareholder.