Transelectrica (the Romanian TSO) will lauch this November a 5-year maturity bond issue, according to a press release. Thus, Transelectrica will borrow from institutional investors to refinance some of its credits and to satisfy the financing needs of investments to be made. The company’s Board of Directors, at the recommendation of the Supervisory Council, decided to initiate the procedures for a corporate bond issue, which will enhance the company’s liquidity, will minimize the currency exposure and will help diversify, in the long-term, the sources for financing. In addition to this, a corporate bond issue might constitute the first step towards the increase of Transelectrica’s financing cost visibility, especially related to the investment program, with positive anticipated effects in company’s rating, and not least, related to the company’s market value”, it is shown in the press release.
The bond issue could be finalized in the second half of this November, when the company will become a publicly traded company on the Bucharest Stock Exchange, and it will need the approval of all its shareholders.