In the news:
Ministry of Finance borrows RON 2.9 bn through the issuance of 1-year T-bills and 3-year T-bonds
Yesterday, the Ministry of Finance borrowed approx. RON 1.5 bn through the issuance of 3-year T-bonds, above the initial intended amount of RON 800 mn. The average yield stood at 5.95%, slightly lower compared to 6.03% paid at the last similar auction one week ago. Additionally, the Ministry also borrowed RON 1.4 bn through the issuance of 1-year T-bills, above the initial intended amount of RON 500 mn. The average yield stood at 5.85%, which compares favourable to the average yield of 6.06% paid at a similar auction two weeks ago.
Fondul Proprietatea NAV per share as of end-December 2012 rises to RON 1.1371
Fondul Proprietatea reported an end-December 2012 NAV per share of RON 1.1371, up 19.4% mom with the revaluation of the stake in Hidroelectrica, still under insolvency, from zero at RON 2 bn, the value assigned by an independent valuator. We remind that the local securities commission approved in December new regulations allowing Fondul to value the companies in insolvency from its portfolio at zero or at a value established by an independent valuator. The value per share for Hidroelectrica was set at RON 22.4, down from RON 37.4 the value as of end-March 2012 which reflected the value of the shareholders' equity, before the start of the insolvency procedure.
As the end-December NAV exceeds the value of the share capital, the fund would be allowed to pay dividends from the 2012 profit, dividends estimated at RON 0.042, which point to a dividend yield of 7.1%, based on January 14 closing price.
Mecanica Ceahlau estimates weak 4Q 2012 figures
Agricultural equipment manufacturer Mecanica Ceahlau (MECF) released some estimated 4Q 12 key figures. Turnover is expected to drop by 27% yoy compared to last quarter of 2011 to RON 4.4 mn, while the company foresees a net profit of some RON 0.6 mn, donw 17% yoy. Over 2012, the company expects its sales to drop by 9% yoy, while its net profit is expected to contract by 16% yoy to RON 6.3 mn, still almost double compared to the budgeted figures.
