The bonds will be traded on the Bucharest Stock Exchange and will yield between 5.4% and 6.4% a year. The final yield will be set on December 18, two days prior to the completion of the offering.
The bonds have a face value of RON10,000, Transelectrica said.
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.
Tuesday, Transelectrica’s shares closed down 1.55% at RON14.6 in Bucharest, valuing the company at RON1.07 billion. (EUR1=RON4.4536)