Electrica announces the price of its inaugural green bonds, within the issue worth 500 million euros. The bonds, which have a maturity of 5 years and are unsecured, had a competitive price of 4.566% (Mid Swap, market average + 230 bps, basis points – ed.), according to a report submitted to the Bucharest Stock Exchange consulted by Energynomics. Electrica’s strategy includes renewable projects of 1 GW and storage projects of almost 900 MWh, by 2030, which will also be financed with the funds obtained from this issue.
Investor demand at the final price exceeded the offer by more than 11.5 times, marking a record in bond issues by Romanian companies.
The funds obtained from this issue will be used to finance and refinance eligible green projects, as defined in Electrica’s Green Financing Framework. They mainly target the development of the Electrica Group’s green generation and electricity storage capacity.
The issuer is rated BBB- (Stable) by Fitch and the expected rating of the issue is BBB-. The bonds are expected to be admitted to trading on the Luxembourg Stock Exchange and subsequently on the Bucharest Stock Exchange. The final prospectus will be published after pricing and will be available on the websites of the Luxembourg Stock Exchange and the issuer, once approved by the CSSF, the competent authority in Luxembourg.
A banking consortium consisting of BCR, BNP PARIBAS, CITI, ING, J.P. Morgan and Raiffeisen Bank International acted as Joint Global Coordinators, while BT Capital Partners, IMI-Intesa Sanpaolo, Societe Generale and UniCredit assisted the transaction as lead arrangers.
“This is not only Electrica’s first bond issue, but also the largest corporate green bond issue in Romania, excluding financial institutions. It demonstrates our commitment to sustainable growth and environmental protection, as well as our ability to attract significant investor interest. The oversubscription of investors by over 11.5 times shows that we are on the right track. We will deliver on our promises regarding sustainable operational profitability in our core business and growth by expanding our renewable energy portfolio,” said Alexandru Chiriță, Chief Executive Officer, Electrica
“Through this transaction, we have sustainably optimized and secured financing for our future strategic projects, while strengthening investors’ trust in Electrica’s vision, resilience and growth trajectory,” added Ștefan Frangulea, the company’s Chief Financial Officer.
“This successful issuance brings us closer to achieving the objectives set in the company’s Strategy, Electrica 2030: Strategy for a sustainable and innovative future. It gives us the flexibility to implement green production projects and reach a target of 1,000 MW of installed capacity for 2030. To maximize the value of these assets, we will also develop 900 MWh of energy storage capacity, contributing to grid stability and generating additional revenues,” also said Andreea Lambru, Chief Business Development Officer at Electrica.
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