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Societatea Energetica Electrica SAAnnouncement

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RNS Number : 0546Q  Societatea Energetica Electrica SA  07 July 2025

 

Electrica Announces Pricing of Inaugural EUR 500mm Green Bonds

 

Bucharest, 7 July 2025 - Societatea Energetică Electrica S.A. ("Electrica")
is pleased to announce the successful pricing of its inaugural EUR 500 million
green bonds. The bonds, which have a 5-year maturity and are senior unsecured,
were priced at a competitive 4.566% yield (MS + 230 bps) .

The demand from investors at the final price exceeded the supply by more than
11.5 times, marking a record in Bond issuances of Romanian companies.

The proceeds from this issuance will be used to finance and/or refinance
Eligible Green Projects as defined in Electrica's Green Finance Framework
(please see here: https://www.electrica.ro/en/investors/bonds/
(https://www.electrica.ro/en/investors/bonds/) ). These are mainly aimed at
developing the green production and the electricity storage capacity of
Electrica Group.

The Issuer is rated BBB- (Stable) by Fitch and the expected issue rating by
Fitch is  BBB-. The bonds are expected to be listed on the Luxembourg Stock
Exchange and subsequently on the Bucharest Stock Exchange. The Final
Prospectus will follow pricing and will be published on the websites of the
Luxemburg Stock Exchange and that of the issuer, once approved by CSSF, the
competent authority from Luxemburg.

We remind our investors that Banca Comerciala Romana S.A., member of Erste
Group ("BCR"), BNP PARIBAS, Citi, ING, J.P. Morgan and Raiffeisen Bank
International as Joint Global Coordinators and Joint Bookrunners, and BT
Capital Partners, IMI-Intesa Sanpaolo, Societe Generale and UniCredit as Joint
Bookrunners were the ones who assisted Electrica in this very transaction.

Statements from Electrica's Leadership:

·      Mr. Mihai Diaconu, Chair of the Board: "Congratulations to
everyone, especially to the executive management, for this landmark
transaction! The investors have understood Electrica's role as a key player
for Romania's Energy Strategy 2025-2030, ensuring energy security and regional
system services, and at the same time aiming to develop its own renewables
generation projects - aligned with Romania's green energy target. Electrica is
committed to contributing to a sustainable future through its green finance
initiatives.

·      Mr. Alexandru Chirita, Chief Executive Officer: "This inaugural
green bond issuance marks a significant milestone for Electrica and for
Romania. It is not only Electrica's first bond issuance, but the biggest
corporate green bond issuance in Romania (with the exception of Fis). It
demonstrates our commitment to sustainable growth and environmental
sustainability and our ability to attract substantial investor interest. The
investor oversubscription of over 11.5 times shows that we are on the right
track. We will deliver on our promises  of sustainable operational
profitability in our core business and of growth through expansion of our
renewable energy portfolio. I would also like to thank our shareholders and
our Board for their continuous trust and support."

·      Mr. Stefan Frangulea, Chief Financial Officer: "I would like to
extend my heartfelt thanks to everyone who made this outstanding transaction
possible - all the project team members and our colleagues in the Group
- for their professionalism, rigor, and unwavering commitment. I am equally
grateful to the issuer's and banks' legal counsel, the underwriting syndicate,
and all other partners and teammates who contributed to this successful
€500 million Eurobond issuance. Through this transaction, we have
sustainably optimized and secured the financing for our future strategic
projects, while further strengthening investors' confidence in Electrica's
vision, resilience, and growth trajectory."

·      Ms. Andrea Lambru, Chief Business Development Officer: "I would
like to address a special thank you to the investors for their trust in our
growth strategy. This successful issuance brings us closer to achieving the
targets set in our Strategy, Electrica 20230: Strategy for a sustainable and
innovative future. It gives us the flexibility of implementing our green
production projects and reaching a 2030 target of 1,000 MW of installed
capacity, and, to maximize the value of these assets, we will also develop 900
MWh of energy storage, enhancing grid stability and capturing additional
revenue streams."

CEO

Alexandru Chirita

 

CFO

Stefan Frangulea

 

CBDO

Andreea Lambru

 

Disclaimer

EEA MiFID II / UK MiFIR professionals/ECPs-only /No EEA or UK PRIIPS KID
Manufacturer target market (MIFID II / UK MiFIR product governance) is
eligible counterparties and professional clients only (all distribution
channels). No EEA or UK PRIIPs key information document (KID) has been
prepared as not available to retail in EEA or UK.

Advertisement. The final prospectus, when published, will be available at
https://www.electrica.ro/en/investors/bonds/

FCA/ICMA Stabilisation

Bonds are not intended and should not be offered, sold or otherwise made
available to private individuals who are Romanian tax residents

The bonds are being offered and sold pursuant to an exemption from the
registration requirements of the U.S. Securities Act, outside the United
States in offshore transactions, in reliance on, and in compliance with
Regulation S under the U.S. Securities Act. This announcement is not for
public release, publication or distribution, directly or indirectly, in or
into the United States or any other jurisdiction where to do so would be
unlawful. This announcement does not constitute or form a part of any offer
of, or solicitation to purchase or subscribe for, any securities in the United
States or any other jurisdiction.

A rating is not a recommendation to buy, sell or hold securities and may be
subject to revision, suspension or withdrawal at any time by the assigning
rating organisation.

 

 

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