Nuclearelectrica and the banking syndicate formed and led by J.P. Morgan SE announced the signing of two financing agreements for two of Romania’s strategic energy projects: the Cernavoda NPP Unit 1 Refurbishment Project and the Cernavoda NPP Units 3 and 4 Project, following approval by Nuclearelectrica shareholders.
The syndicate is formed by the following banks (in alphabetical order): Banca Comerciala Romana SA, Banca Transilvania S.A., BRD Groupe Societe Generale SA, CEC Bank S.A., Citibank Europe PLC, Dublin, Romania Branch, ING Bank N.V. Amsterdam-Bucharest Branch, UniCredit Bank SA and J.P. Morgan SE based in Germany for financing the Unit 1 Refurbishment Project and Banca Transilvania S.A., BRD Groupe Societe Generale SA, CEC Bank S.A., ING Bank N.V. Amsterdam-Bucuresti Branch, UniCredit Bank SA and J.P. Morgan SE based in Germany for financing the Units 3 and 4 Project.
The proceeds of the EUR 540 million loan will be used to finance the preliminary phase of the Cernavoda Nuclear Power Plant Unit 1 Refurbishment. The Cernavoda Nuclear Power Plant Unit 1 Refurbishment is currently in the second stage of execution, which includes the activities necessary to prepare for the implementation of the project, such as: planning activities; concluding engineering, design, procurement and construction contracts; purchasing long-cycle manufacturing equipment; developing the execution plan and building the infrastructure; obtaining the necessary permits; securing financing sources. Recently, Nuclearelectrica started the civil works for the Cernavoda Nuclear Power Plant Unit 1 retrofit project.
The proceeds from the EUR 80 million loan will be used to finance the LNTP (Limited Notice to Proceed) phase of the Cernavoda Nuclear Power Plant Units 3 and 4 project. This financing will be contracted by Energonuclear S.A., the project company for the development of the Units 3 and 4 Project, as the borrower, and will be supported by a shareholder guarantee from Nuclearelectrica.
The Cernavoda Nuclear Power Plant Units 3 and 4 Project is also in the second stage of execution, the preliminary works (Limited Notice to Proceed – LNTP), pursuing the following main objectives: development of the engineering necessary for the definition of the project; structuring and contracting the financing (by developing cost estimates and implementation schedules with a high degree of certainty); obtaining the favourable view of the European Commission following the Project Opinion, in accordance with Article 43 of the EURATOM Treaty and obtaining a positive decision in accordance with the relevant European State aid provisions; adopting the Final Investment Decision to advance to Phase III (Construction).
“The two financing agreements signed today with the banking syndicate formed and led by J.P. Morgan SE are part of the financing strategy and aim to advance, according to the schedule, two of Nuclearelectrica’s strategic projects: the Refurbishment of Unit 1 and the Units 3 and 4 Project. Our objective is to deliver safe and available energy, according to plan, without delays, without cost overruns. This partnership is a recognition of the solidity of both projects and a reconfirmation of the complex role that nuclear energy is going to play in the long term, which I call trust, and I thank J.P. Morgan SE and the banking institutions for their professionalism and partnership”, said Cosmin Ghiță, General Manager, Nuclearelectrica.
“We are pleased to note that both projects – the Unit 1 Refurbishment, as well as the Units 3 and 4 Project – have attracted considerable interest from leading banks in Romania, a testament to the Romanian banking sector’s confidence in Nuclearelectrica’s performance and operational excellence, as well as a partnership for the further development of this strategic energy sector, designed to provide predictable, reliable and clean energy for many decades to come,” added Daniel Adam, Chief Financial Officer, Nuclearelectrica.
Both projects will contribute to ensuring Romania’s energy security, energy availability, clean energy and significant socio-economic development, including the supply chain.
By increasing nuclear capacity with two more CANDU units (with an installed capacity of 700 MW each) and extending the life of Unit 1 of the Cernavoda NPP by another 30 years, 66% of Romania’s CO2-free energy will come from nuclear energy, also providing thousands of jobs.