The issue is due for completion on December 18. The bonds, which have a face value of RON10,000, will be traded on the Bucharest Stock Exchange.
Transelectrica will use the proceeds to refinance older loans and replenish its investment funds.
The power grid operator hired local lender BCR to assist with the offering. According to the bond prospectus, BCR will buy any remaining bonds once the subscription period ends.
Transelectrica’s shareholders approved an overall budget of up to RON900 million for potential bond issues in 2013-2017, both in lei and in foreign currency.
The company is majority-owned by the Finance Ministry, which controls 58.69% of the shares. Other shareholders include investment fund Fondul Proprietatea (FP.RO), with a 13.5% stake, and regional investment fund SIF Oltenia (SIF5.RO), with 6.3% of the shares.
Monday, Transelectrica’s shares closed up 0.34% at RON14.74 in Bucharest, valuing the company at RON1.08 billion. (EUR1=RON4.4537)