RO power distributor Electrica gets EUR 150 mln loan for renewable investments

Electrica (BVB ticker: EL), one of the leading players in Romania’s electricity distribution and supply market, has signed a RON 750 million (EUR 150 mln) financing deal with Erste Group Bank and Raiffeisen Bank Romania.

Electrica will employ the loan to finance its strategy for the period 2019-2023, which also envisages expanding on the value chain of electricity, especially in the production of electricity, with a particular focus on renewable sources.

“As an important step towards putting Electrica Group strategy of inorganic growth into action, the signing of this milestone financing agreement with two of our partner banks will enable us to finance the acquisition of projects in the sector of renewable energy production, both operating and greenfield, reaffirming our commitment to contribute with our own efforts towards the fulfilment of the European Ecological Pact’s environmental goals,” said Corina Popescu, General Manager of Electrica.

The RON 750 million facility has a tenor of maximum two years, and Electrica has the option to issue a bond to refinance the loan or convert the facility into a 5-year fully amortizing loan.

Erste Group and Raiffeisen Bank Romania serve as lenders on an equal basis for the facility, and BCR acts as Facility & Security Agent.

In this transaction, Electrica was assisted by a team of consultants from the law firm Filip and Company, while the lenders were assisted by Dentons Europe - Zizzi-Caradja & Asociații.

(Photo: Florin Brezeanu/ Dreamstime)