Romania’s Electrica raises RON 750 million for funding the expansion on electricity value chain


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Societatea Energetica Electrica S.A., one of the leading players in Romania’s electricity distribution and supply market, today announced that it has signed a RON 750 million financing deal with Erste Group Bank AG and Raiffeisen Bank România S.A. Electrica will employ the loan, which corresponds to roughly EUR 150 million, to finance the implementation of its strategy for the period 2019-2023, which also envisages expanding on the value chain of electricity, especially in the production of electricity and with a particular focus on renewable sources.

The RON 750 million facility has a tenor of maximum two years with the option at the end of the period for Electrica, in agreement with the Lenders, to either issue a bond or to convert the facility into a 5-year fully amortising loan. The facility, for which Erste Group and Raiffeisen Bank Romania serve as lenders on an equal basis and for which Erste Group’s Romanian subsidiary Banca Comercială Română (BCR) acts as Facility & Security Agent, provides Electrica with financing for the potential acquisition of energy companies and assets, with respect to renewable power producers or projects. In this transaction, Electrica Group was assisted by a team of consultants from the law firm Filip and Company, while the Lenders were assisted by Dentons Europe – Zizzi-Caradja & Asociații.

“As an important step towards putting Electrica Group strategy of inorganic growth into action, the signing of this milestone financing agreement with two of our partner banks will enable us to finance the acquisition of projects in the sector of renewable energy production, both operating and greenfield, reaffirming our commitment to contribute with our own efforts towards the fulfilment of the European Ecological Pact’s environmental goals”, said Corina Popescu, General Manager of Electrica SA.

“The EUR 150 million financing deal that we’ve reached with Electrica provides another example of how Erste Group is supporting companies in the CEE region in their transition to a greener future by financing renewables and improvements to power grids,” said Radu Moldovan, Industry Lead for Energy and Infrastructure at Erste Group.

“Banca Comercială Română is a close partner for Electrica, being an active supporter across the full range of products and services for all companies in the Electrica group. This new syndicated loan, provided through Erste Group, consolidates our journey together”, said Ramona Kurko, Head of Energy and Utilities at BCR.

“As a financial institution we know that supporting customers to achieve their sustainability goals, comes with financing transactions as the EUR 150 million loan signed today with Electrica SA, since by channelling funds towards eligible projects that will ensure the transition to a sustainable economy, we are generating value for society and have a positive impact. The financing deal with Electrica is the perfect example how we do banking in a responsible way, using our financing and advisory products and services to enable companies’ transition to new sustainable business model, with a view to long term prosperity of the market we operate in”, said Cătălin Cepișcă, Senior Manager, Energy, Utilities and Metals Department at Raiffeisen Bank.

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