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The Polish National Depository for Securities (KDPW) is opening a new operational link with the Lithuanian market, which will enable Lithuanian companies to be listed on the Warsaw Stock Exchange (WSE) for the first time. On 19 November 2010, KDPW and LCVPD (AB Lietuvos Centrinis Vertybini? Popieri? Depozitoriumas ), the Lithuanian central securities depository, signed an agreement providing for the clearing and settlement of transactions in Lithuanian securities to be listed on the WSE.
“The National Depository for Securities is actively supporting the listing of foreign companies in Warsaw, offering them access to capital from a broad range of Polish investors to enable these foreign companies to grow and expand. The new operational link with LCVPD is a further step in the realisation of KDPW’s Development Strategy, which underlines our growing partnership with foreign central securities depositories in the Central and Eastern European region” said KDPW President & CEO Iwona Sroka.
In addition to the advantages for Lithuanian companies in being able to raise capital on the WSE, the new link will also provide Polish investors with opportunities for more diversified investment portfolios and for a broader range of investment strategies, including arbitrage in both markets.
The link with the Lithuanian market is the newest operational link opened by KDPW this year. In 2010, KDPW opened a link with the Bulgarian and Canadian markets. Companies from these markets are already listed in Warsaw: ICPD from Bulgaria on the NewConnect market and KOV from Canada on the WSE main market.
The KDPW strategy in building new foreign links and increasing the profitability of existing ones forms part of the Corporate Development Strategy for 2010-2013, approved in December 2009. Other aims and strategic projects include co-operation with the WSE and other Polish market participants in attracting foreign companies to list in Warsaw.
“This is only the beginning of our co-operation with LCVPD. Next year, following necessary amendments in Polish legislation, we plan to open an account for LCVPD in KDPW in order to provide Lithuanian investors with easier access to the Polish market through LCVPD” – said Iwona Sroka, KDPW President & CEO.
Currently, KDPW maintains operational connections with 16 foreign central securities depositories, including seven direct links between KDPW and a foreign depository, including LCVPD and nine indirect links, either via one of two international depositories (Clearstream Banking Luxembourg and Euroclear Bank) or through a custodian bank (the link to the Bulgarian market).
KDPW’s existing links enable the WSE to list over two dozen foreign companies from Austria, the Czech Republic, Estonia, France, Germany, Hungary, Italy, Slovakia, Sweden, UK, USA, Canada, Bulgaria and now also Lithuania.
In addition to co-operation with institutions of the Polish capital market, in particular the Warsaw Stock Exchange, KDPW is working to simplify registration, participation, and corporate action procedures for foreign issuers from countries with which KDPW has established or will establish a link.
