Syndicated Loan Agreement Worth RON 3.1bn for Electrica

Electrica, the only Romanian listed company in the sector of electricity distribution, supply and production, announces the signing of a syndicated loan agreement worth RON 3.1 billion. Approval for this loan was granted by the Extraordinary General Meeting of Shareholders on November 8, 2024.

The loan will be used to partially refinance the existing bank exposure at the level of the parent company, Societatea Energetica Electrica S.A. (“ELSA”) and its subsidiaries – Electrica Furnizare S.A. (“EFSA”) and Distributie Energie Electrica Romania S.A. (“DEER”), as well as for the development of the renewable energy production segment and to support capital investments related to the 2025-2027 CAPEX plan of the electricity distribution subsidiary.

The agreement is structured in four credit facilities:

• Revolving credit facility for ELSA – for the purpose of refinancing a short-term bilateral loan
• Green term credit facility for ELSA – with the objective of financing eligible green projects, namely projects for the production and storage of renewable solar and/or wind energy
• Revolving credit facility for EFSA – intended for refinancing several short-term bilateral loans
• Term loan for DEER – to refinance short-term bilateral loans and finance the 2025-2027 CAPEX plan of the distribution subsidiary.

“The signing of this syndicated loan agreement marks an essential step in our strategy of financial consolidation and support for 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 the energy sustainability of Romania. Thus, today we are closer to achieving our goal of becoming a leader in sustainability, creating performance and added value for the shareholders and investors who give us their trust,″ said Electrica SA CEO, Alexandru Chirita.

The benefits for the Electrica Group include optimization of the financing structure by reducing the share of short-term debt in total debt, which strengthens the company’s financial position and allows it to manage available resources more efficiently. Supporting strategic investments is another major advantage, facilitating the financing of green renewable energy and distribution infrastructure projects, thereby contributing to sustainable development and the achievement of the Electrica Group’s sustainability objectives.

In addition, improved financial performance strengthens the stability and predictability of future cash flows and EBITDA, providing a solid basis for long-term planning and future investments. All these cumulative benefits enable Electrica to consolidate its market position and achieve its strategic objectives in a sustainable and efficient manner, while delivering on its promises to create long-term value for its shareholders and investors.

“This syndicated loan gives us the flexibility we need to manage working capital efficiently and finance long-term investments. The collaboration with the syndicate of banks, actively involved in the process, ensures that we have access to the resources we need to continue to develop and implement 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 is 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 show in dealing with such complex transactions, both now and in the future,” added Stefan Frangulea, Electrica CFO.

“BT is one of the main partner banks of Electrica Group and one of the most important financiers of the Romanian energy sector. Thus, we are honoured to have played a defining role in structuring and successfully closing a transaction that further strengthens our strategic partnership, while playing an important role in the development of Romania’s energy infrastructure. The Electrica Group has ambitious growth plans, and we are determined to contribute as a financial partner to this success story,” said Cosmin Calin – Executive Director Large Corporate Clients, Banca Transilvania.

“We are pleased to be partners in financing the Electrica Group and to contribute to the company’s growth and transformation plans. BCR is one of the main supporters of energy projects in Romania and we believe that investments in this sector are essential for the sustainable development of the economy. We use our expertise in structuring complex financings in the sector and we will continue to support the dialog on the role of the energy sector in ensuring business continuity, adopting new technologies and increasing the quality and reliability of services for consumers,” said Bogdan Cernescu, Managing Director, Head of Corporate Banking BCR.

 

About Electrica

Electrica Group is a key player in the electricity distribution, supply and production market in Romania and one of the most important players in the energy services sector.

The Electrica Group provides services to approximately 3.9 million users and has a national coverage – organized in three areas for electricity distribution: North Transylvania, South Transylvania, North Muntenia, and throughout the whole country for the supply of electricity and for maintenance and energy services.

As of July 2014, Electrica has been a company with private majority capital, listed on the Bucharest and London stock exchanges.