The company has a RON4.4 billion capitalization. The company’s report does not mention the interest rate and maturity of the loan. The approval for this loan was granted by the Extraordinary General Meeting of Shareholders on November 8, 2024.
The loan will be used for the partial refinancing of existing bank exposure of the parent company, Societatea Energetică Electrica S.A. (“ELSA”), and its subsidiaries – Electrica Furnizare S.A. (“EFSA”) and Distribuție Energie Electrică România S.A. (“DEER”). Additionally, the loan will support the development of the renewable energy production segment, and the capital investments related to the 2025-2027 CAPEX plan of the electricity distribution subsidiary.
The agreement is structured into four credit facilities: • a revolving credit for ELSA aimed at refinancing a short-term bilateral loan; • a green term credit facility for ELSA to finance eligible green projects, specifically solar and/or wind renewable energy production and storage projects; • a revolving credit for EFSA to refinance several short-term bilateral loans; and • a term credit for DEER, intended to refinance short-term bilateral loans and finance the 2025- 2027 CAPEX plan of the electricity distribution subsidiary.
“Signing this syndicated credit agreement marks a crucial step in our strategy for financial consolidation and supporting 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 developing strategic projects that contribute to Romania’s energy sustainability. 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 trust us,” said Alexandru Chiriță, CEO Electrica.
The financing was coordinated by Banca Transilvania S.A. (“BT”) and Banca Comercială Română S.A. (“BCR”) as Mandated Lead Arrangers. The participating banks in the syndicate and their respective roles were as follows: • Banca Transilvania – Mandated Lead Arranger Coordinator, Lender, Structuring and Documentation Agent, Collateral Agent • Banca Comercială Română – Mandated Lead Arranger Coordinator, Lender, Structuring and Documentation Agent, Facility Agent • Raiffeisen Bank – Lender, Sustainability Agent • BRD – Groupe Société Générale – Lender • CEC Bank – Lender • ING Bank – Lender • Intesa Sanpaolo Bank Romania – Lender.
The benefits for the Electrica Group include optimizing the financing structure by reducing the share of short-term debt in the 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 by facilitating the financing of green renewable energy and distribution infrastructure projects, thus contributing to sustainable development and achieving Electrica Group’s sustainability goals.
“This syndicated loan provides us with the necessary flexibility to efficiently manage working capital and finance long-term investments. The collaboration with the syndicate of banks actively involved in the process provides us with the access to the resources needed to continue the development and implementation of our renewable energy projects. We thank them and all partners in this complex transaction for their support. For the company, this syndicated loan represents a first, but I am convinced that, together with the Electrica team, it is just the beginning and an indicator of the professionalism we demonstrate in handling such complex transactions, both now and in the future,” added Ștefan Frangulea, Chief Financial Officer Electrica.
Cosmin Calin, Executive Director Large Corporate, Banca Transilvania, has added: “BT is one of the main partner banks of Electrica Group and one of the most important financiers of the energy sector in Romania. Thus, we are honored to have played a defining role in the structuring and successful closing of a transaction that further strengthens our strategic partnership, whilst also having an important role in the development of the energy infrastructure in Romania. Electrica Group has ambitious growth plans, and we are determined to contribute to its success story from our role of financial partner.”
Bogdan Cernescu, Managing Director, Head of Corporate Banking BCR, stated: “We value the opportunity to be one of the financing partners for 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 bring our expertise in structuring complex financing solutions in this field and will continue to support the dialogue on the energy sector’s role in ensuring business continuity, adopting new technologies, and improving the quality and reliability of services for consumers.”
The law firms that provided legal assistance for the transaction were Radu Tărăcilă Pădurari Retevoescu SCA (for the banks) and Dentons (for the Electrica Group), while the sustainability component was structured with the support of Raiffeisen Bank.
Electrica reported RON363.5 million net profit in 2024, down 41.4% from 2023, amid operating revenues worth RON11 billion, 17.8% lower.
(English version by Catalina Apostoiu)