The European Investment Bank (EIB) is lending EUR 65 million to Transelectrica SA to support its medium-term investment programme, which involves modernising and retro-fitting seven high-voltage substations in Romania’s power transmission grid and replacing transformers and autotransformers in high-voltage substations. The investment will help improve the reliability and quality of electricity supplies.
The EIB loan will cover up to 50% of the total project cost over 15 years, with a 2-year grace period. This is the first direct loan provided to a Romanian state-owned company partly on a single-signature basis (EUR 32.5 million). The remaining amount will be guaranteed by third party banks.
This is the third loan to Transelectrica from EIB resources. The previous ones were also for investment in the rehabilitation of the national power grid.
Background:
The mission of the EIB, the European Union’s bank, is to contribute to the integration, balanced development and economic and social cohesion of the Member States by financing sound investments. Thanks to its Statute and shareholders (the 27 Member States, including Romania), the EIB has a AAA rating and can therefore borrow funds on the capital markets on favourable terms, which it passes on via the loans that it grants to its customers and final beneficiaries. EIB lending in Romania since 1990 totals around EUR 7.8 billion and has been used to finance investment projects to strengthen Romania’s competitiveness and increase the quality of life of the country’s citizens.
CN Transelectrica SA is the Romanian transmission system operator, responsible for electricity transmission from generators to major consumers connected to the grid, operation of the power system and the wholesale electricity market. The company has been listed on the Bucharest Stock Exchange since April 2006 (with a free float of 12.8%), and is currently owned by the Romanian Ministry of Economy (73.7%) and the Property Fund (13.5%).
The EIB loan will cover up to 50% of the total project cost over 15 years, with a 2-year grace period. This is the first direct loan provided to a Romanian state-owned company partly on a single-signature basis (EUR 32.5 million). The remaining amount will be guaranteed by third party banks.
This is the third loan to Transelectrica from EIB resources. The previous ones were also for investment in the rehabilitation of the national power grid.
Background:
The mission of the EIB, the European Union’s bank, is to contribute to the integration, balanced development and economic and social cohesion of the Member States by financing sound investments. Thanks to its Statute and shareholders (the 27 Member States, including Romania), the EIB has a AAA rating and can therefore borrow funds on the capital markets on favourable terms, which it passes on via the loans that it grants to its customers and final beneficiaries. EIB lending in Romania since 1990 totals around EUR 7.8 billion and has been used to finance investment projects to strengthen Romania’s competitiveness and increase the quality of life of the country’s citizens.
CN Transelectrica SA is the Romanian transmission system operator, responsible for electricity transmission from generators to major consumers connected to the grid, operation of the power system and the wholesale electricity market. The company has been listed on the Bucharest Stock Exchange since April 2006 (with a free float of 12.8%), and is currently owned by the Romanian Ministry of Economy (73.7%) and the Property Fund (13.5%).