Jan 15th 2013 - bloomberg.com

The leu strengthened to the highest in more than 11 months as JPMorgan Chase & Co. (JPM) said Romanian bonds are eligible for its emerging-market government bond index.

The currency appreciated 1 percent to 4.3432 per euro by 7:02 p.m. in Bucharest, the highest level since Feb. 3 on a closing basis. Yields on Romania’s June 2019 euro-denominated bonds slid six basis points, or 0.06 percentage point, to 3.819 percent.

Romania is eligible for entry into the JPMorgan GBI-EM Index Series, and is “currently slated for inclusion” in the March 1 rebalance, the bank said in an e-mailed note today. Inclusion, which is subject to final determination, will be in a phased approach over a three-month period ending May 1. Romania’s weighting on completion is estimated at 0.54 percent in the GBI-EM Global Diversified index, according to the note.

“Romania’s inclusion into the JPMorgan bond index will attract a lot of inflows from foreign investors which are currency positive,” Esther Law, a senior emerging-market strategist at Societe Generale SA in London, said in a message today. “This is especially true with the current low non- resident holdings of local bonds.”

 

January 21st 2013 - zf.ro

On January 16 in the morning, it was officially confirmed what was originally discussed in a few offices. U.S. bank JP Morgan said in a report that it will include government bonds in domestic currency (RON) with a maturity of five years in its global emerging markets index. Within minutes Romanian currency (RON) fell from 4.38 RON/ EUR to 4.33 RON/EUR and only purchases by the Romanian Central Bank prevented the EUR to go under 4.3RON/EUR. Romania's inclusion in this index, albeit in a very small percentage, just 0.5% means that the market will absorb EUR 5 billion in May.

If during the summer the question was how soon we’ll see a EUR at 5 RON, dealers and investors now wonder when will it get under 4 RON. Five-year bond yield has already fallen by over one percentage point a month, up from 5.4% a year.

 

February 18, 2013 - business24.ro

The first energy crop willow in Romania, founded in Covasna was harvested last weekend.

Plantation covers an area of 45 hectares and is owned by the businessman Arpad Domokos of Poian, who quit after nearly four years workingh with other cultures and started working exclusively with Salix ,an energy willow used as fuel for heating.

Arpad Domokos said Monday that no other culture out of which they had experienced so far, from the classic ones to poppy , mint and ornamental plants, did not prove as profitable as Salix. It expects to have a profit of between 600 and 1,000 euros per hectare.

The first harvest was gathered from three hectares where willows had reached a height of 8-10 meters. They have been slashed and chopped with combines simultaneously. Arpad Domokos said on three hectares he collected over 100 tons of chips, which will be sold to firms or individuals who use biomass boilers.

Arpad Domokos plans to plant this year with Salix another 20 hectares . He said that plants are not fussy, and withstand drought and rain, grow rapidly and become more profitable from year to year, because after each cutting branches thicken.

"The initial investment amounts to about 2300-2500 euros per hectare, but in three years is amortized. The plant is advantageous because you only plant it once for 30 years and than you just harvest ,it grows by itself (...) I am very happy, it was worth teh effort, it's the most profitable culture of all the ones we had before, "said Arpad Domokos.

Green Energy Management Association of Sf.Gheorghe , who promotes alternative energy sources, said that thermal power plants that use as energy source Salix, trimming branches from parks and forests, sawdust and other waste wood offcuts,have lower costs approximately 30% compared with those who consume gas.

The president of the Association, Lajos Vajda, who established the first cluster of biomass in Romania, says Salix is successfully used abroad, especially in Austria and Sweden, and besides saving costs there is another great advantage,the environment protection. Vajda told Agerpres that Salix are very adaptable and wetlands,that are usually left uncultivated,represent an ideal place for cultivating it.

 

February 10, 2013 - zf.ro

Romania ranked fifth in the European Union after newly-installed power in wind farms last year, with 923 MW from new investments of about 1.5 billion euros. The only countries that have exceeded local market were Germany, Britain, Italy and Spain, the European leaders in wind energy. Last year, Romania has become the country with the largest onshore wind farm in Europe after an investment of 1.1 billion. euro Czechs made from CEZ in Dobrogea two villages.

 

March 13th 2013 - agrimoney.com

Velcourt, the UK farm management group, named Romania as "one of the world's foremost agricultural investment opportunities" as it unveiled a joint venture aimed at exploiting the country's rising farmland prices.

Romanian farmland prices have been rising at a rate of 20% a year since the Eastern European country joined the European Union six years ago, Velcourt said.

Yet they remain among the lowest in Europe, at roughly E2,700 per hectare, compared with figures of E6,500-7,000 in neighbouring Poland, which has a better developed agricultural sector – indeed it is the EU's fourth-ranked grains grower, besides a major producer of crops such as apples and strawberries.

In the UK, where Velcourt manages more than 50,000 of arable and dairy farms, good land can achieve E30,000 per hectare.

"Land prices in Romania are currently some of the lowest in Europe, but are expected to strengthen and converge with those of Western Europe," the group said.

'Compelling case'

Velcourt, which said it researched markets throughout Eastern Europe, also rated Romania highly on its "excellent" soil quality, with 20% of the so-called black earth soils renowned for supporting high arable yields.

Romania is also served by a network of canals, fed from the Danube, to enable irrigation in a country which is, like Russia and Ukraine across the Black Sea, is prone to droughts.

"Having researched numerous countries, we believe Romania offers a compelling case for the three central factors that makes land an attractive asset-class - scope for land value growth, the ability to acquire freehold land, and the soil quality for farming the land," said James Townshend, the Velcourt chief executive, and a major shareholder.

Romanian setbacks

Nonetheless, many investors in the past have been dogged by the difficulty of acquiring land in a country where plots are typically small, and in multiple ownership, making deals difficult to strike.

Furthermore, the arrival of farmland investors from abroad - other operators there include Copenhagen-listed FirstFarms - has attracted a backlash in Romania, as in many other countries, and pressure for limitations on ownership by foreigners.

However, Romania's government, whose room for manoeuvre on farmland curbs is limited by EU membership, has taken a relatively liberal approach to agriculture reforms, with priorities including measures to encourage land consolidation, and the creation of more efficient farms, besides the creation of a functional land market.

Velcourt has joined up with Mintridge International, an Eastern European agricultural consultancy, to manage its Romanian business, which will be open to external investors.

Velcourt says it can offer "multiple projects", of E14m-20m each, offering investors a potential internal rate of return of 20% over eight years.

The group, based in Herefordshire near the Agrimoney.com offices, was formed in 1967, and in 2011 posted pre-tax profits of £4.6m on £35.3m of sales.

 

Header Style
Menu Style
Color :