Romania’s Transgaz secures EUR 388 mln syndicated loan to finance gas network development plan

UniCredit Bank Romania has successfully coordinated a syndicated loan of approximately RON 1.93 billion (EUR 388 mlb) for state-controlled Transgaz (BVB: TGN), the technical operator of Romania's gas transport system. The loan aims to support the Development Plan of the National Natural Gas Transportation System, which includes the construction of crucial gas pipelines and the enhancement of gas supply capacity in Romania.

Ion Sterian, General Manager of Transgaz, emphasized the strategic importance of this financing: “We have always been concerned with ensuring a competitive financing mix for financing the investment program so that we can achieve the best results. The purpose of the syndicated loan is to ensure the financing/refinancing of the expenses related to the strategic investment projects contained in the Natural Gas National Transport System Development Plan (SNT) approved by ANRE.” He added that these investments are crucial for enhancing national, regional, and European energy security.

The syndicated credit facility was arranged by UniCredit Bank, which acted as the Mandated Principal Arranger, Coordinator, Bookrunner, Lender, Documentation and Payment Agent, and Facility Agent. The loan syndicate also included Banca Comercială Română, Banca Transilvania, Raiffeisen Bank, and CEC Bank as Principal Arrangers.

Raluca Popescu, Corporate Executive Vice President of UniCredit Bank, highlighted the significance of this transaction: "Transgaz S.A. is today one of the most important companies in the national energy sector... Due to its strategic importance, UniCredit Bank together with other Romanian banks supports its development and progress so that our country occupies the place it deserves in the European economy."

The projects financed by this loan include the Tuzla-Podișor gas pipeline, BRUA phase II, and several other key pipelines, which will significantly bolster the gas transport infrastructure and contribute to the sustainable development of Romania's energy sector.

(Photo source: Inquam Photos / George Calin)