The European Bank for Reconstruction and Development (EBRD) has helped local electricity distribution company CEZ Distributie secure a syndicated loan of up to RON 675 million (EUR 154 million equivalent).

CEZ Distributie will use the money to finance its 2015-16 investment programmes in upgrading the distribution network, improving efficiency, and installing smart meters. The company also aims to restructure its balance sheet in order to optimise its capital structure.

CEZ Distributie is a subsidiary of Czech energy group CEZ and serves 1.4 million customers in the region of Oltenia in southern Romania. The company had a EUR 185 million turnover and a net profit of almost EUR 10 million in 2014. It had over 1,200 employees.

EBRD has contributed some RON 281 million (EUR 64 million) from its own resources to this loan while the remaining RON 394 million (EUR 90 million) will come from other members of the syndicate.

This is the first long tenor local currency (RON) EBRD-syndicated loan to a corporate in Romania.

“We have supported the reform of the Romanian electricity sector for many years and we are pleased to continue our engagement with this loan. The introduction of smart meters and the creation of the basis for smart grids will be another major step forward and lead to higher efficiency for the benefit of the provider, the clients and, of course, the environment,” said Nandita Parshad, Director for Power and Energy at the EBRD.

Romania was the sixth country by volume of EBRD investments in 2014, with almost EUR 600 million invested. To date, the Bank has invested over EUR 7 billion in the country and has also mobilised more than EUR 14 billion for these ventures from other sources of financing.

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editor@romania-insider.com