Romania’s Electrica seeks to accelerate green transition with EUR 300 mln green/sustainability bonds

Romanian electricity supply and distribution group Electrica (BVB: EL), with the state still the largest shareholder (48.8%), envisages a EUR 300 million bond issue or several subsequent issues of green bonds or sustainability-linked bonds, or a mix thereof for the period 2024-2025, according to the documents sent to shareholders for approval in the general meeting on April 25.

Electrica continues to pursue the expansion of its portfolio in the field of electricity production, especially from renewable sources, having at this time projects in different phases of execution with a capacity of some 300 MW.

The bonds will be non-convertible, non-guaranteed, and may be issued for a maximum maturity of up to 10 years.

The bonds may be denominated in both RON and other currencies and may be issued on the Romanian or international capital market (EU and US) based on a flexible structure, with a fixed or variable interest rate (including the possibility of including a step-up or step-down mechanism for Bonds whose terms and conditions will be correlated with ELSA's sustainability objectives).

Separately, Electrica reported its operating revenues dropped by 3.7% y/y to RON 13.3 billion (EUR 2.7 billion), but its net profit increased by 11% y/y to RON 620 million (EUR 130 million).

The management of the company, with a capitalization of RON 4.22 billion (EUR 844 million), proposes the disbursement of only RON 40 million (EUR 8 million) as dividends out of last year’s profit.

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