Electrica has signed a 3.1 billion lei syndicated loan agreement coordinated by Banca Transilvania and Banca Comercială Română, as mandated lead co-arrangers, with the participation of Raiffeisen Bank as Sustainability Agent, including a credit facility intended to finance eligible green projects and support a sustainable business model. The loan is structured in four credit facilities and will be used to partially refinance existing bank exposure, support investment plans in energy infrastructure and develop the renewable energy production portfolio.
The benefits for the Electrica Group include optimizing the financing structure, supporting strategic investments and improving medium and long-term financial performance, generating added value for the company’s shareholders and investors.
“The loan will be used to partially refinance the existing banking exposure at the level of the parent company, Societatea Energetică Electrica and its subsidiaries – Electrica Furnizare și Distribuție Energie Electrică România (DEER), as well as to develop the renewable energy production segment and to support capital investments related to the 2025-2027 CAPEX plan of the electricity distribution subsidiary,” company officials said.
“The signing of this syndicated loan agreement marks an essential step in our strategy of financial consolidation and supporting investments in renewable energy. This transaction allows us not only to optimize the financing structure of the Electrica Group and ensure the stability of our current and future operations, but also to focus on the development of strategic projects that contribute to Romania’s energy sustainability. Thus, we are today closer to achieving our objective of becoming a leader in sustainability, creating performance and added value for the shareholders and investors who place their trust in us”, said Alexandru Chiriță, CEO of Electrica.
The benefits at the Electrica group level include the optimization of the financing structure by reducing the share of short-term debt in the total debt, which strengthens the company’s financial position and allows it to manage available resources more efficiently. Supporting strategic investments represents another major advantage by facilitating the financing of green renewable energy projects and distribution infrastructure, thus contributing to the sustainable development and achievement of the Electrica Group’s sustainability objectives.
In addition, the improvement of financial performance strengthens the stability and predictability of future cash flows, as well as EBITDA, which provides a solid basis for long-term planning and for the realization of future investments. All these cumulative benefits allow Electrica to consolidate its market position and fulfill its strategic objectives in a sustainable and efficient manner, while supporting its promises to create long-term added value for its shareholders and investors.
“This syndicated loan provides us with the necessary flexibility to efficiently manage working capital and finance long-term investments. The collaboration with the syndicate of banks, actively involved in the process, ensures us access to the necessary resources to continue the development and implementation of our renewable energy projects and we thank them and all the partners in this complex transaction for their support. For the company, this syndicated loan represents a first, but I am convinced that, together with the Electrica team, it is just the beginning and an indicator of the degree of professionalism we demonstrate in approaching such complex transactions, both now and in the future,” added Ștefan Frangulea, Electrica’s Chief Financial Officer.