Romanian Enel branches borrow EUR 375 mln from parent company

Enel Energie and Enel Energie Muntenia, two major suppliers of electricity on the Romanian market, borrowed EUR 250 mln and EUR 125 mln respectively in August from their Italian parent company.

The financing requirements of the two companies are reportedly increasing, and banks with which they had contracted funds could not respond in optimal time, according to a report of Fondului Proprietatea published at the Bucharest Stock Exchange (BVB).

Enel Energie and Enel Energie Muntenia had previously contracted financing programs worth EUR 235 mln and EUR 255 mln respectively to cover current needs.

This month, the same programs could not be activated in time and forced the Enel branches to resort to an emergency solution, contracting loans from the financial division of Enel Group, namely Enel Finance International, according to the report, cited byEconomedia.

According to the document, starting from the second part of 2021, the two companies have faced a crisis situation that has hit the entire energy sector.

The increase in energy prices, as well as the impact of the legislative changes the government introduced to address it, such as price capping, affected Enel’s bottom line.

For the first half of the year, the Enel Group reported operational losses totaling EUR 51 mln. The costs are connected to local infrastructure and network activities. A further loss of EUR 115 mln is connected to the retail sector in Romania. The negative impact of the governmental measures reaches EUR 260 mln, according to the report.

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