ROMGAZ Signs EUR 325mn Financing Deal with Raiffeisen Bank

S.N.G.N. ROMGAZ S.A., the largest gas producer in Romania, announced that it has signed a EUR 325 million financing deal with Raiffeisen Bank S.A.

ROMGAZ will apply the loan to finance part of the purchase transaction price to be paid for all shares issued by ExxonMobil Exploration and Production Romania Limited (EMEPRL), that holds 50% of the rights and obligations for Neptun Deep block.

The EUR 325 million facility has a tenor of five years and is linked to the overall financial performance of ROMGAZ. The facility, with Raiffeisen Bank acting as lender, provides ROMGAZ with financing for its development plan of the resources, covering part of the purchase price for the entire shares issued by EMEPRL.

“Signing such financing deal is necessary to achieve an important objective of ROMGAZ Development Strategy for 2021 – 2030, that is to complete the purchase transaction of the shares of EMEPRL that holds 50% of the rights and obligations for Neptun Deep block. It is a first step proving our determination to maintain ROMGAZ as the most important player on Romania’s gas market and strategically position ourselves in the current geopolitical context. The development and production, as soon as possible, of the reservoirs with commercial potential within the Neptun Deept block will ensure significant volumes to be added up to Romania’s gas production, and such will sustain, undoubtedly, the security of gas supply of the country,” ROMGAZ CEO Aristotel Jude stated.

For its part, ROMGAZ CFO Razvan Popescu added: “Cooperation with the financial partners aims at ensuring competitive financing for the purchase of EMEPRL shares, a ROMGAZ strategic investment objective, aiming at actually contributing to consolidating the energetic security. This deal is the first step of financing necessary for ROMGAZ within the context of Neptun Deep project, and after the completion of the purchase transaction of EMEPRL shares, we will start the formalities to ensure the future financing necessary for ROMGAZ Group to develop the Neptun Deep project.”

“The EUR 325 million financing deal that we’ve reached with ROMGAZ is an example for our commitment to sustain the transition process to a greener economy, enabling companies to implement their sustainable strategy,” noted Catalin Cepisca, Senior Director Raiffeisen Bank. “The transition to an energy system with net zero emission is possible with strong energy champions, such as ROMGAZ, ensuring throughout the process the security of energy supply in the region. We are pleased to be the main financing bank of the company and we believe this sizable facility is a clear indication of our support for the energy sector,” he concluded.

The conclusion of the financing deal was facilitated by the legal support of the law firms Dentons, representing SNGN ROMGAZ SA, and Wolf Theiss, acting for the lender Raiffeisen Bank.

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