The European Bank for Reconstruction and Development (EBRD) granted a syndicated loan to CEZ Distributie of 675 million lei (153.7 million euros) to support the company’s electricity distribution projects, the first syndicated long-term financing local currency granted by the bank to a company in Romania, informs Mediafax.

The financing is structured in a loan of 281.25 million lei (64 million euros) and the funds from BERD and syndicated funds of 393.75 million RON (89.7 million euros), it is shown in a BERD press release.

The projects relate to the period 2015-2016 investment programs in the distribution network to reduce costs, improve efficiency and installation of smart meters, accounting for restructuring the balance optimize capital structure and provide working capital.

“We support for many years the reform of the Romanian electricity sector and we are pleased to continue our engagement with this loan. The introduction of smart meters and the basis for networking smart will be a new major step and will increase efficiency for the benefit of suppliers, customers and, of course, the environment,” said Nandita Parshad, director for electricity and the BERD.

Matteo Patrone, director of BERD in Romania, added that a next-generation electricity network in Romania is a new step to release the economic potential of Romania.

“It is an excellent example of investment in infrastructure that will have a lasting effect and will bring commercial benefit customers and private consumers by rewarding responsible consumption. We are confident that the project can be a model of success that will attract many successors” said Patrone.

Country Director and Chairman board of CEZ, Martin Zmelik showed that CEZ has a long-term partnership with the BERD.

“Our cooperation with BERD is part of a long-term partnership that we have developed, as well as long term view taken by the company to the market in Romania. We will continue to invest in upgrading the distribution network, as non- I hired 10 years ago, when I came to Romania, and optimize internal processes in order to provide our customers quality distribution,” said Zmelik.

CEZ Distribution has 1.4 million customers in the Oltenia region.

Romania was the sixth country for BERD’s investments in 2014, with nearly 600 million raised. So far, the bank has invested over 7 billion euros in Romania to reach more than 14 billion euros for projects from other funding sources.