Bucharest municipality to seek EUR 350 mln EBRD loan for public transport investments

Bucharest City Hall plans to contract a loan of up to EUR 350 million from the European Bank for Reconstruction and Development (EBRD) to finance public transport investments, including tram infrastructure upgrades and the purchase of new articulated trolleybuses. The borrowing proposal is scheduled to be put to a vote by the General Council on June 19, according to Buletin de București.

If approved, the financing would be structured in four tranches, with the first amounting to at least EUR 75 million. The loan would have a maturity of 15-20 years and a grace period of up to four years. Interest would be based on the six-month EURIBOR plus a margin estimated at between 1.15% and 1.25%, with the final spread to be determined following project analysis and negotiations.