Romania's natural gas transport system operator Transgaz wants to borrow RON 360 million (EUR 74 mln) for 13 years to finance its investments.

Last summer, the company borrowed another RON 300 mln (EUR 64 mln) for working capital.

The banks willing to finance the state-owned company's investment plans can submit bids by October 8, 2020.

The interest rate can be fixed or variable - indexed to the 6-month ROBOR. Transgaz is listed on the Bucharest Stock Exchange (BVB) and has a capitalization of RON 3.4 billion (EUR 700 mln).

"The selection of a financing bank will be carried by conducting competitive negotiations in line with the provisions of a tender book that is available upon request to interested banks," reads the bidding call published by Transgaz.

The gas transporter is one of the most profitable state companies in Romania, with solid cash flow. However, in recent years, it distributed almost its entire profits as dividends.

(Photo: Tinnaporn Sathapornnanont | Dreamstime)

andrei@romania-insider.com