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06.07.06

Raiffeisen advises on the first privatization through IPO on theBucharest Stock Exchange.

Vienna/Bucharest: Transelectrica S.A.,based in Bucharest, is the firstutility company to be floated in Romania. Transelectrica S.A. provideselectricity transmission service and technical management of theRomanian Power System as well as the administration of the electricitymarket. The Initial Public Offering (IPO), a partial privatization, wasconducted through a capital increase thereby excluding pre-emptiverights.

“The fact that the offering was heavily oversubscribed, despite the difficult period on the stock markets, demonstrates investors’ increasing confidence in the Romanian business environment as the country is preparing to join the EU“ declared Laurentiu Ciocirlan, Director Debt& Equity Origination at Raiffeisen Capital& Investment(RCI) in Romania, one of the members in the consortium that prepared theTranselectrica IPO. Erich Obersteiner, Director Equity Capital MarketsCEE at Raiffeisen Centrobank AG (RCB) Vienna added:“In view of the challenging market environment the high demand for the offer is a huge success for the Romanian government, the company as well as the consortium. The fact that the IPO was conducted through a capital increase with the proceeds flowing solely to the company convinced investors“. RCB placed a substantial portion of the issue with international investors.

Transelectrica S.A. offered 7,329,787 new shares through a capitalincrease from June 14 until June 28, 2006 through a public offer inRomania and an international private placement. The issue price was setat RON 16.8 per share. The offer consisted of a retail tranche of 40%and an institutional tranche of 60%. The institutional tranche wassubscribed 8.4 times while the retail tranche was subscribed 3.5 times.

IPO proceeds amount to ca. EUR 35 Mio. The company plans to use thefresh capital for modernization and further development of theinfrastructure. The IPO represents the first step in implementing agovernment program with the aim of creating a strong Romanian capitalmarket via further IPOs of Romanian utility companies.

The shares of Transelectrica S.A. will be listed on the Bucharest StockExchange around the end of July 2006.

The consortium was composed of Alpha Finance Romania, Raiffeisen Capital& Investment, a 100% subsidiary of Raiffeisen bank S.A. in Romania, aswell of BRD Securities.

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For further information please contact Michael Palzer (+43.1-71707-1504,michael.palzer@ri.co.at) or Lars D. Hofer (+43.1-71707-1930,lars.hofer@ri.co.at).

http://www.rzb.at, http://www.ri.co.at, http://www.raiffeisen.ro,http:/www.rcb.at

This document and the information contained herein are not to beconstrued as an offer to purchase or sell shares.

 

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