First EIB loan to a corporate in Romania's local currency

The European Investment Bank (EIB) is providing the first loan to a corporate in Romania that can be disbursed in local currency; the equivalent of 50 million Euro will be granted to Transgaz, Romania's gas transmission company.

2017-12-14 16:07:52

As with the first 50 million Euro loan tranche signed in October 2017, the EIB funds will finance the construction of a new European gas transmission corridor to increase security of gas supply and to reduce energy dependence through diversification of gas supply routes and sources. This operation is backed by the European Fund for Strategic Investments (EFSI), which is the main pillar of the Investment Plan for Europe (IPE).

EIB Vice President Andrew McDowell commented: "This is the first EIB loan provided in Romanian Leu to a corporate since the launch of EIB lending operations in the country in 1992. It will enable Transgaz greater flexibility to avoid currency exchange risk in financing gas infrastructure in the region. The project also contributes to the expansion of the number of gas suppliers in South-Eastern Europe and opens the regional market to increased competition which will benefit consumers in terms of reduced prices and improved Security of Supply - both are priorities for the EU and the EIB. At the same time this project is a tangible example of a use of the EFSI guarantee focused on accelerating Europe's economic growth and job creation."

The EIB funds will finance the construction of a 478-km natural gas transmission pipeline between Podisor and Recas and the construction of three compressor stations located in Podisor, Bibesti and Jupa in Romania.