Rețele Electrice companies, part of the PPC Group, signed credit agreements worth one billion lei with the European Bank for Reconstruction and Development (EBRD), Banca Transilvania, BCR and ING Bank Romania, as part of a syndicated financing in which the EBRD former consortium leader. The funds will be used to refinance and finance the investment programs of electricity distribution operators Rețele Electrice Muntenia (REM), Rețele Electrice Banat (REB) and Rețele Electrice Dobrogea (RED) in their areas of activity, for the years 2023 and 2024.
“Our main concern in the coming years is the realization of the ambitious investment programs announced by the PPC Group to ensure the resilience of electricity networks, through digitization, modernization and reconfiguration. The infrastructure operated by Rețele Electrice companies has the role of a vector of economic growth, to ensure the energy transition and the competitiveness of the economy. We already have the most efficient distribution operators in Romania and obtaining such financing, at competitive interest rates, allows us to maintain a low level of costs, for the final benefit of our customers. The need for investments in electrical distribution networks is very high and that is why we are making efforts to finance these investments at optimal costs,” said Răzvan Popescu, financial director of PPC companies in Romania.
Within the consortium, the EBRD will make available total funds of 500 million lei, of which 175 million lei for Rețele Electrice Muntenia, 175 million lei for Rețele Electrice Banat and 150 million lei for Rețele Electrice Dobrogea.
The three commercial banks will provide another 500 million lei, in equal shares. Thus, REM obtained from BT, BCR and ING loans of 175 million lei, REB 175 million lei, and RED 150 million lei.
The total value of the investment projects that will be financed including with the help of the mentioned credits is 1.442 billion lei, of which 575 million lei at Rețele Electrice Muntenia, 465 million lei at Rețele Electrice Banat and 402 million lei at Rețele Electrice Dobrogea.
“We are pleased to support PPC Romania in the implementation of priority investments in Romania’s distribution network. The project will improve the reliability and efficiency of the grid and support Romania’s transition to green energy,” said George Gkiaouris, Regional Head of the EBRD’s South East Europe Energy Department.
The EBRD, a leader in climate finance, has supported the implementation of renewable energy auctions in the countries where it operates. To date, the EBRD has invested almost EUR 11 billion in 524 projects in Romania. The EBRD’s current strategy for Romania prioritizes improving the quality of sustainable infrastructure.