The company plans to issue unsecured corporate bonds, non-convertible into shares, with a fixed interest rate of maximum 4.5%, Transgaz said in a corporate announcement.
The proceeds of the five-year bond will be used for the financing of the “2014-2023 National Gas Transmission System Development Plan,” it said.
In May, Transgaz chief executive Petru Vaduva said the company might issue the bond in the fall season and may start the construction project in March next year.
Transgaz intends to also ask for EU financial support for a pipeline project that will link the southern Romania with the Central Europe. The 560-million euro project, named BRUA, will link the natural gas systems of Bulgaria, Romania, Hungary and Austria and the 550-kilometer pipeline should be ready by 2019.
The pipeline will be later extended to the Black Sea, with 300 kilometers.