ROMANIA: SNTGN TRANSGAZ SA signed a syndicated loan contract for approximately 1.93 billion lei

SNTGN Transgaz SA, the technical operator of the National Gas Transmission System, signed a syndicated loan contract for a total amount of lei 1.93 billion to ensure the financing of investment projects included in the National Gas Transmission System Development Plan. UniCredit Bank successfully completed the coordination of a syndicated loan for SNTGN Transgaz SA, acting as Mandated Lead Arranger, Bookrunner, Lender, Documentation and Payment Agent and Facility Agent. The banks participating in the transaction as Lead Arrangers are Banca Transilvania, Banca Comercială Română, Raiffeisen Bank, UniCredit Bank and CEC Bank.

On this occasion, Mr. Ion STERIAN, Director – General of SNTGN Transgaz SA, declared:
“We have always been focused on ensuring a competitive funding mix to finance the investment program so that we can achieve the best results, the best performance. The purpose of the syndicated loan is to ensure the financing/refinancing of expenses related to the strategic investment projects included in the National Gas Transmission System (NTS) Development Plan approved by ANRE, strategic investments supported by the Romanian Government and intended to contribute to the achievement of the objectives of sustainable and competitive development of the gas transmission infrastructure, to ensure and strengthen national, regional and European energy security and solidarity.
The funding source obtained together with other available Transgaz funding sources will be used both for strategic investment projects included in the NTS Development Plan and for projects that enable the connection to the gas transmission system of localities in Romania, with a direct impact on the improvement of the quality of life and the development of local and national economic and social infrastructure. It is of strategic importance for Black Sea gas extracted to be transmitted through the NTS to the Romanian and European markets, to increase the security of gas supply in Romania and the EU and guarantee the supply of natural gas to domestic and regional consumers.
Out of these projects I would like to mention: Tuzla – Podișor gas pipeline, BRUA Phase II, Ghercești – Jitaru; Prunișor – Orșova – Băile Herculane – Jupa gas transmission pipelines; DN 600 Mihai Bravu-Siliștea gas transmission pipeline and its changing into a piggable pipeline; Gas supply of Mintia Plant; Increasing the transmission capacity of the NTS and the security of gas supply of the Electrocentrale Ișalnița Branch and Electrocentrale Turceni Branch. Transgaz has also planned investments for the development of the NTS on new consumption routes to ensure the transmission of gas for newly established gas distribution systems and to supply new connected consumers, for the modernization and retechnologization of the NTS, investments it supports with its own funds.
The syndicated loan contract concluded with the consortium of Romanian banks, Banca Transilvania, Banca Comercială Română, Raiffeisen Bank, UniCredit Bank and CEC Bank, participating in the syndication procedure, proves the full confidence that Romanian banking institutions have in the ability of Transgaz management to turn projects into reliable investments. I am confident that, together with our financial partners, we will achieve the investment objectives undertaken, as the loan will substantially contribute to the implementation of the investments aimed at the development, modernization and expansion of the national gas transmission infrastructure”.

Raluca Popescu, Corporate Executive Vice President of UniCredit Bank said:
” Today, Transgaz S.A. is one of the most important companies in the national energy sector, it is the sole operator of the Romanian National Natural Gas Transmission System and ranks fourth in the top of the European Union’s natural gas transmission system operators, in terms of the length of the managed transmission infrastructure. It is a listed company and has a corporate governance system in place, which increases our confidence in the ability of the company’s management to effectively implement the national strategy in the field of domestic and international natural gas transmission. Due to its strategic importance, UniCredit Bank, together with other banks in Romania, is supporting its development and progress so that our country can take its rightful place in the European economy. We are all very happy when we manage to close a transaction that has a major impact on our economy, but also on the economies of the countries in the region.”

Mihaela Petraru, Director of Large Corporate, Financial Institutions and Public Sector at UniCredit Bank added: “We congratulate Transgaz on the successful completion of its first syndicated transaction, an example of best practice for the development of important investment projects for Romania. By setting up this syndicated financing, UniCredit Bank continues to develop and provide its technical expertise for the investments of our country’s strategic companies.
“We support the major infrastructure projects which strengthen energy security and Romania’s strategic role in the region. And this syndicated financing demonstrates Transgaz’s ability to carry out important projects with multiple benefits. From increasing end-users’ access to the gas network, to improving security of supply and developing gas network interconnection. All these are essential components for energy stability and reliability, both locally and in Europe”, stated Bogdan Cernescu, Executive Director of Corporate Banking, BCR.

“By this financing we reaffirm the interest of Banca Transilvania in supporting the Romanian economy and the projects of strategic importance for our country. We are honoured we had the opportunity to contribute to the structuring and successful closing of this transaction. We are also convinced of Transgaz’s capacity to successfully complete these investment projects”, stated Cosmin Călin, Executive Director of Large Corporate Clients, Banca Transilvania.

“We are glad to have contributed with and, together with the other participant banks, provided the financing in a short term, but with long term benefits by supporting the investment plan in the national transmission network. This financing confirms once again the commitment of Raiffeisen Bank and our partner to support the transition to the green economy, using gas sources available in Romania, by creating the necessary transmission corridors to invest resources in the local economy”, Cătălin Cepișcă, Senior Director of the Energy Department of Raiffeisen Bank Romania.

“For CEC Bank it is already a tradition to support Romanian companies, whether we are talking about SMEs or about companies of national importance, such as Transgaz. We are happy for the opportunity to support this transaction with high impact projects for our energy sector”, said Bogdan Constantin NEACSU, President of CEC Bank.