“Transelectrica’s board has decided to start procedures to launch a first corporate bond issue that would help improve liquidity levels, reduce foreign currency exposure and expand the long-term financing pool,” the statement noted.
Pending approval from its shareholders, Transelectrica plans to issue bonds worth around RON200 million, the company said.
Transelectrica expects the offer would be completed in the second half of November.
The five-year bonds will be traded on the Bucharest stock exchange.
If successful, Transelectrica plans to initiate a medium-term notes program and considers a gradual increase of the maturities.
Transelectrica’s planned bond will be the third corporate issue on the local market this year.
In May, Romanian lender Banca Transilvania (TLV.RO) announced it has raised EUR30 million at a seven-year convertible bonds sale at an annual interest rate of 6.25% over 6-month Euribor.
Additionally, UniCredit Tiriac Bank sold five-year bonds worth RON550 million (EUR121 million) via an offer ended June 21. The bond carries a coupon of 6.35%.
Transelectrica 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.
At around 11:00 am Thursday, Transelectrica traded up 1.25% at RON12.99 a share, amid a slightly rising market.