Kazakh-Romanian Energy Fund borrows EUR 83 mln for cogeneration power plant

The Kazakh-Romanian Energy Investment Fund (FIEKR) announced that it has successfully completed a syndicated loan totalling EUR 83 mln to finance the construction of the new cogeneration plant on the platform of the Petromidia refinery.

The estimated deadline for the commissioning of the cogeneration plant is the end of July 2023.

The banks that extended the loan are Banca Comerciala Romana, as the main arranger, bookrunner, documentation agent, facility and guarantor, together with Raiffeisen Bank, Alpha Bank, OTP Bank and Garanti Bank as the mandated principal arrangers.

The investment is of a brownfield type and will use the existing assets of Termoelectrica Midia Plant, as well as its staff.

The loan recently accessed by FIEKR accounts for about 65% of the value needed to carry out the investment, estimated at USD 148 mln. The financing benefits from a grace period until January 2024 - 6 months after the commissioning of the plant. The repayment period is 5 years, until January 2029.

The new combined heat and power generation unit will run on natural gas as its main fuel and will partially use (up to a maximum of 25%) the gas resulting from the refinery's technological processes. The plant will have a very high degree of efficiency that can reach 92%.

(Photo source: Facebook/Rompetrol-KMG International)