Broker Cluj: Money from bonds to be spent on the BSE

The money Broker Cluj intends to raise through bonds will be used to invest in shares on the Bucharest Stock Exchange (BSE) and in instruments on the Sibiu Monetary Financial and Commodities Exchange, said Petru Prunea, chairman of the brokerage company. The value of the bond issue stands at 20 million RON (5.6 million euros). If the company’s shareholders approve the move in the General Assembly scheduled for the end of this month, the paperwork and subscription of the bonds will be completed by January 2007. Although borrowing by means of bond issues for subsequent investment on the Stock Exchange involves a high degree of risk, Prunea is optimistic and is certain the whole offering will be subscribed. The guarantees offered by SSIF Broker are mainly the quoted shares in the company’s portfolio, whose value amounts to 59 million RON (16.6 million euros).