ROMANIA: DEER is to access a 200 million euro loan from the EIB for investments in networks, guaranteed by the parent company Electrica
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Electrica (ELSA) will convene the shareholders to approve the guarantee of a loan of 200 million euros necessary for investments in networks in the next three years, according to an information sent to the Bucharest Stock Exchange.
Here is an extract from the notice published by Electrica for the AGEA that will take place at the beginning of December:
“Approval of the guarantee by ELSA of a term loan, in the amount of up to EUR 200,000,000 or equivalent in RON, which Distribuție Energie Electrică România S.A. (DEER) will contract it from the European Investment Bank (EIB) for the financing of the investment plan related to the period 2025-2027, the value of the guarantee provided by ELSA being a maximum of EUR 240,000,000 or equivalent in RON, under the conditions set out in the memorandum of understanding . The loan from the EIB (which can be signed in one or more contracts) that will be contracted by DEER will be guaranteed by ELSA through an autonomous guarantee at the first request (or other form), valid until the obligations resulting from contract/guarantee”.
Also, in the same meeting, Electrica’s shareholders would approve an additional act to a credit facility of 450 million lei concluded in November 2021 between Electrica and two banks that lent to the company, Erste and Raiffeisen, through which the parties decided to extend the termination date by 4 years and the extension of the availability period by 1 year.
We remind you that Electrica’s shareholders are to approve an issue of green bonds of up to 500 million euros and the co-contracting of a credit line of around 620 million euros, according to an AGM convenor announced last month. The AGM that will approve the issue and the loan will take place on November 8.
The net profit of the Electrica group for the first six months of 2024 registered a decrease of 40.3 million lei, reaching the value of 102.1 million lei, from 142.4 million lei in the first half of the previous year.
The Electrica Group is a key player on the electricity supply and distribution market in Romania, as well as one of the most important players in the energy services sector. The company is private following the BSE listing, but the largest shareholder is the Romanian state.
