PPC borrows EUR 200 mln from EBRD-led syndicate for its power distribution networks in southern Romania

Rețele Electrice companies, part of the PPC Group, signed on July 18 credit agreements worth RON 1 billion (EUR 200 million) with the European Bank for Reconstruction and Development (EBRD), Banca Transilvania, BCR, and ING Bank Romania, as part of a syndicated financing in which the EBRD was the consortium leader.

The funds will be used to refinance and finance the investment programs of electricity distribution operators Rețele Electrice Muntenia (REM), Rețele Electrice Banat (REB), and Rețele Electrice Dobrogea (RED) in southern Romania for the years 2023 and 2024.

The total value of the investment projects that will be financed, including with the help of the mentioned loans, is RON 1.44 billion (EUR 290 million).

Within the framework of the financing agreements, the possibility of increasing the value of the loans by another RON 500 million is provided, starting from 2025, a non-binding option available to the Electric Networks companies.

"Our main concern in the coming years is to achieve the ambitious investment programs announced by the PPC Group to ensure the resilience of electricity networks through digitization, modernization, and reconfiguration.[...] The need for investments in electrical distribution networks is very high, and that is why we are making efforts to finance these investments at optimal costs”, stated Răzvan Popescu, Financial Director of PPC companies in Romania.

Within the consortium, the EBRD will make available total funds of RON 500 million, and the three commercial banks will provide another RON 500 million, in equal shares.

(Photo source: the company)