Electrica signs 3.1 billion lei syndicated loan agreement

Electrica announces the signing of a 3.1 billion lei syndicated loan agreement. The loan will be used to partially refinance the existing banking exposure of the parent company, Societatea Energetică Electrica S.A. (“ELSA”) and its subsidiaries – Electrica Furnizare S.A. (“EFSA”) and Distribuție Energie Electrică România S.A. (“DEER”), as well as to develop the renewable energy generation segment and to support capital investments related to the 2025-2027 CAPEX plan of the electricity distribution subsidiary.

Alexandru Chiriță, CEO of Electrica, stated: “The signing of this syndicated loan agreement marks an essential step in our strategy of financial consolidation and supporting investments in renewable energy. This transaction allows us not only to optimize the financing structure of the Electrica Group and ensure the stability of our current and future operations, but also to focus on the development of strategic projects that contribute to Romania’s energy sustainability. Thus, we are today closer to achieving our objective of becoming a leader in sustainability, creating performance and added value for the shareholders and investors who place their trust in us.”

The benefits at the Electrica Group level include the optimization of the financing structure by reducing the share of short-term debt in the total debt, which strengthens the company’s financial position and allows it to manage available resources more efficiently. Supporting strategic investments represents another major advantage by facilitating the financing of green renewable energy projects and distribution infrastructure, thus contributing to the sustainable development and achievement of the Electrica Group’s sustainability objectives.

In addition, the improvement of financial performance strengthens the stability and predictability of future cash flows, as well as EBITDA, which provides a solid basis for long-term planning and for the realization of future investments. All these cumulative benefits allow Electrica to consolidate its market position and fulfill its strategic objectives in a sustainable and efficient manner, while supporting its promises to create long-term added value for its shareholders and investors.

Ștefan Frangulea, Electrica’s Chief Financial Officer, added: “This syndicated loan provides us with the necessary flexibility to efficiently manage working capital and finance long-term investments. The collaboration with the syndicate of banks, actively involved in the process, ensures us access to the necessary resources to continue developing and implementing our renewable energy projects and we thank them and all the partners in this complex transaction for their support. For the company, this syndicated loan represents a first, but I am convinced that, together with the Electrica team, it is only the beginning and an indicator of the level of professionalism we demonstrate in approaching such complex transactions, both now and in the future.”

The financing was coordinated by Banca Transilvania S.A. (“BT”) and Banca Comercială Română S.A. (“BCR”) as Mandated Co-Lead Arrangers.