Shareholders are called to approve guarantees for a loan of up to RON1.02 billion from the European Investment Bank to Electrica’s electricity distribution branch Distributie Energie Electrica Romania SA (DEER). The operator plans to use the loan for investments in the period 2021-2023.
Electrica also seeks to contract a bridge loan of up to RON750 million from a consortium consisting of the banks Erste Bank and Raiffeisen Bank, together with an engagement letter for arranging a bond issuance (conditional upon obtaining the necessary corporate approvals) to finance merger and acquisition opportunities.
The loan will have as single guarantee a movable mortgage on accounts opened by Electrica with BCR and Raiffeisen Bank and will be constituted for a maximum value of RON825 million, the company said.
Electrica reported a consolidated net profit of RON388 million for 2020, 87.5% higher compared with 2019.
Electrica is 48.8% owned by the Romanian state.