REG - Soc EnergElectricaSA - Syndicated loan of 3.1 billion RON

Societatea Energetica Electrica SAAnnouncement

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RNS Number : 2240H  Societatea Energetica Electrica SA  02 May 2025

Announcement - 30 April 2025

 

Electrica signs syndicated loan agreement worth 3.1 billion RON

 

·   The syndicated loan agreement was coordinated by Banca Transilvania and
Banca Comercială Română as Mandated Lead Arrangers, with Raiffeisen Bank
participating as the Sustainability Agent. The agreement includes a credit
facility  intended for financing eligible green projects and supporting a
sustainable business model.

·   The loan is structured into four credit facilities and will be used for
the partial refinancing of the existing bank exposure, supporting investment
plans in energy infrastructure, and developing the renewable energy production
portfolio.

·   The benefits for the Electrica Group include optimizing the financing
structure, supporting strategic investments, and improving financial
performance in the medium and long term, thereby generating added value for
the company's shareholders and investors.

Electrica, the only Romanian listed company in the sector of electricity
distribution, supply, and production, announces the signing of a syndicated
loan agreement worth 3.1 billion RON. The approval for this loan was granted
by the Extraordinary General Meeting of Shareholders on November 8, 2025.

The loan will be used for the partial refinancing of existing bank exposure of
the parent company, Societatea Energetică Electrica S.A. ("ELSA"), and its
subsidiaries - Electrica Furnizare S.A. ("EFSA") and Distribuție Energie
Electrică România S.A. ("DEER"). Additionally, the loan will support the
development of the renewable energy production segment, and the capital
investments related to the 2025-2027 CAPEX plan of the electricity
distribution subsidiary.

The agreement is structured into four credit facilities:

•     a revolving credit for ELSA aimed at refinancing a short-term
bilateral loan;

•     a green term credit facility for ELSA to finance eligible green
projects, specifically solar and/or wind renewable energy production and
storage projects;

•     a revolving credit for EFSA to refinance several short-term
bilateral loans; and

•     a term credit for DEER, intended to refinance short-term bilateral
loans and finance the 2025-2027 CAPEX plan of the electricity distribution
subsidiary.

Alexandru Chiriță, CEO Electrica, said: "Signing this syndicated credit
agreement marks a crucial step in our strategy for financial consolidation and
supporting investments in renewable energy. This transaction allows us not
only to optimize the financing structure of the Electrica Group and ensure the
stability of our current and future operations but also to focus on developing
strategic projects that contribute to Romania's energy sustainability. Thus,
today we are closer to achieving our goal of becoming a leader in
sustainability, creating performance and added value for the shareholders and
investors who trust us."

The benefits for the Electrica Group include optimizing the financing
structure by reducing the share of short-term debt in the total debt, which
strengthens the company's financial position and allows it to manage available
resources more efficiently. Supporting strategic investments is another major
advantage by facilitating the financing of green renewable energy and
distribution infrastructure projects, thus contributing to sustainable
development and achieving Electrica Group's sustainability goals.

Additionally, the improvement of the financial performance is reflected in the
stability and predictability for future cash flows and EBITDA, ensuring a
solid foundation for long-term planning and future investments. These
cumulative benefits allow Electrica to consolidate its market position and
achieve its strategic objectives in a sustainable and efficient manner while
fulfilling its promises to create long-term added value for its shareholders
and investors.

Ștefan Frangulea, Chief Financial Officer Electrica, added: "This syndicated
loan provides us with the necessary flexibility to efficiently manage working
capital and finance long-term investments. The collaboration with the
syndicate of banks actively involved in the process provides us with the
access to the resources needed to continue the development and implementation
of our renewable energy projects. We thank them and all partners in this
complex transaction for their support. For the company, this syndicated loan
represents a first, but I am convinced that, together with the Electrica team,
it is just the beginning and an indicator of the professionalism we
demonstrate in handling such complex transactions, both now and in the
future."

Cosmin Calin, Executive Director Large Corporate, Banca Transilvania, has
added: "BT is one of the main partner banks of Electrica Group and one of the
most important financiers of the energy sector in Romania. Thus, we are
honored to have played a defining role in the structuring and successful
closing of a transaction that further strengthens our strategic partnership,
whilst also having an important role in the development of the energy
infrastructure in Romania. Electrica Group has ambitious growth plans, and we
are determined to contribute to its success story from our role of financial
partner."

Bogdan Cernescu, Managing Director, Head of Corporate Banking BCR, stated: "We
value the opportunity to be one of the financing partners for Electrica Group
and to contribute to the company's growth and transformation plans. BCR is one
of the main supporters of energy projects in Romania, and we believe that
investments in this sector are essential for the sustainable development of
the economy. We bring our expertise in structuring complex financing solutions
in this field and will continue to support the dialogue on the energy sector's
role in ensuring business continuity, adopting new technologies, and improving
the quality and reliability of services for consumers."

The financing was coordinated by Banca Transilvania S.A. ("BT") and Banca
Comercială Română S.A. ("BCR") as Mandated Lead Arrangers. The
participating banks in the syndicate and their respective roles were as
follows:

•   Banca Transilvania - Mandated Lead Arranger Coordinator, Lender,
Structuring and Documentation Agent, Collateral Agent

•   Banca Comercială Română - Mandated Lead Arranger Coordinator,
Lender, Structuring and Documentation Agent, Facility Agent

•   Raiffeisen Bank - Lender, Sustainability Agent

•   BRD - Groupe Société Générale - Lender

•   CEC Bank - Lender

•   ING Bank - Lender

•   Intesa Sanpaolo Bank Romania - Lender

The law firms that provided legal assistance for the transaction were Radu
Tărăcilă Pădurari Retevoescu SCA (for the banks) and Dentons (for the
Electrica Group), while the sustainability component was structured with the
support of Raiffeisen Bank.

 

CEO
 

Alexandru-Aurelian Chirita

 

Contact details:

Electrica Investor Relations ; E-mail: ir@electrica.ro
(mailto:ir@electrica.ro)   ; Phone:+40 731 796 111

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