Distribuție Energie Oltenia (DEO), the electricity distribution company in the Oltenia region and one of the four electricity distributors in the country, has signed a landmark financing agreement with a syndicate of local and international financial institutions, including, among others, Banca Comercială Română S.A (BCR), Erste Group Bank AG, BRD Groupe Societe Generale S.A, UniCredit Bank S.A., Banca Transilvania S.A., Alpha Bank S.A., PKO Bank Polski S.A. Warsaw Bucharest Branch and Siemens Financial Services through Siemens Bank GmbH. The transaction represents one of the largest “green” loans ever issued on the Romanian market, refinancing existing debt and adding a new capacity of 1.76 billion lei, mainly intended to finance additional investments over the next 7 years.
“The company has demonstrated its alignment with the EU taxonomy and will continue to play its role as an enabler for the region on its journey towards a green future. The funds raised are expected to support the investments planned for the current regulatory period and the region’s broader energy transition ambitions. The main areas of investment include network expansion and consolidation to facilitate connectivity for prosumers and renewable energy sources, network modernization and automation to reduce the frequency and duration of power outages, as well as digitalization of activities, enabling improved management of electricity distribution and an optimized experience for consumers,” the company’s press release states.
“The robust financing structure and the support received from the participating financiers attest to DEO’s solid financial and operational performance achieved over the past two years, as well as the company’s high-level market approach to sustainability and support for the energy transition in Romania.”
Distributie Oltenia, part of the Evryo Group, ensures the supply of electricity to over 1.5 million consumers in 7 counties in the Oltenia region: Dolj, Argeș, Olt, Gorj, Vâlcea, Mehedinți and Teleorman.
The activities of the distribution service include the operation, maintenance and development of electrical equipment, with the aim of distributing electrical energy from producers to consumers, in conditions of security in the operation of electrical installations, operational safety, ensuring quality parameters and reducing maintenance and repair costs.