Romania's gas transporter Transgaz will issue RON 500 million (EUR 111 million) worth of bonds, with a up to 4.5% yield and a maturity of minimum five years. The company’s shareholders approved the bond issue on June 16.

The company will use the money to finance a gas pipeline between southern Romania and Central Europe.

In July, Transgaz will ask for financing from the European Union, for the EUR 560 million project that will connect the gas networks of Bulgaria, Romania, Hungary and Austria. If the EU funds are approved, Transgaz needs to cover half of the project’s costs from its own funds.

The gas transporter would later extend the gas pipeline to the Black Sea, which would increase the project’s cost to EUR 1.1 billion.

editor@romania-insider.com