Transelectrica will use bank loans and will issue bonds to partially finance works of the investment program for the period 2021-2025, according to a document of the company’s management that will be submitted to the attention of shareholders. Almost a quarter of the investments assumed until 2025, ie over 800 million lei, would be financed by loans from commercial banks and international financial institutions and by issuing bonds, writes e-nergia.ro.

Transelectrica’s investment program is of about 3.7 billion lei, for the period 2021-2025, both for ongoing and new projects. About 827 million lei of this amount will be attracted by the company on the financial markets.

“In order to finance the investment program, the Company will resort to loans amounting to 850 RONm, aims to attract EU or other similar funds in the amount of 827 RONm, and the difference of 2,057 RONm will be its own sources. Thus, in the structure of the financing mix, bank loans and corporate bonds will represent 23% of the total sources, European funds and the like will represent 22%, and the difference of 55% of own sources,” it is shown in the company document.

“The company has one of the lowest levels of indebtedness compared to other TSOs in Europe. In fact, from a historical perspective, the Company has the lowest ratio of loans to equity. As a consequence and in order to remain within the risk limits accepted by the rating agencies as well as by the potential financiers (4 x EBITDA), the Company can comfortably support a level of loans of up to 2.2 billion lei.”