“We want to play an active role in the development of the energy sector in Romania, and the loan to Hidroelectrica is in line with this strategy,” said Sanda Abrudan, energy and resources manager with RBS Romania. “To that end RBS Romania has approved bilateral facilities of more than EUR100 million for companies in the sector over the past three months alone.”
The EUR32 million will be used as working capital and will be repaid in up to one year.
The contract with RBS comes after the recent signing of another financing deal worth EUR110 million with the European Bank for Reconstruction and Development (EBRD). The money will be used to retool Stejaru Bicaz hydropower plant, which has been operating for more than fifty years. The investment should keep the plant going for another thirty years.
Economy Ministry data show Hidroelectrica was the company with the highest amount of money allocated for investments from early 2009 through mid this year. Its investment budget stood at over 2.6 billion lei (EUR610 million). It also ranks third in terms of investment planned to be made by yearend, with over RON2 billion, Economy Ministry data reveal. (EUR1=4.2805)
(English version by Loredana Fratila-Cristescu; Editing by Ioana Tudor)