Nuclearelectrica and the banking syndicate arranged and led by J.P. Morgan SE announced the signing of two financing agreements for two of Romania’s strategic energy projects: the refurbishment of Cernavoda NPP Unit 1 and Cernavoda NPP Units 3 and 4 Project, following the approval by Nuclearelectrica’s shareholders.
The syndicate is comprised of the following banks: Banca Comerciala Romana SA, Banca Transilvania S.A., BRD Groupe Societe Generale SA, CEC Bank S.A., Citibank Europe PLC, Dublin Romania Branch, ING Bank N.V. Amsterdam – Bucharest Branch, UniCredit Bank SA, and J.P. Morgan SE headquartered in Germany for the financing of Unit 1 Refurbishment Project and Banca Transilvania S.A., BRD Groupe Societe Generale SA, CEC Bank S.A., ING Bank N.V. Amsterdam – Bucharest Branch, UniCredit Bank SA, and J.P. Morgan SE headquartered in Germany for the financing of Units 3 and 4 Project.
The proceeds from the EUR 540 million loan will be used to finance the preliminary phase of the Refurbishment of Cernavoda NPP Unit 1. The Refurbishment of Cernavoda NPP is currently in the second stage of execution which includes the activities needed to prepare implementation of the Project, such as: planning of activities; conclusion of engineering, design, procurement and construction contracts; procurement of long manufacture-cycle equipment; elaboration of the execution plan and infrastructure building; obtaining necessary permits; securing sources of funding. Recently, Nuclearelectrica started the civil construction works for the Refurbishment Project of Cernavoda NPP Unit 1.
The proceeds from the EUR 80 million loan will be used to finance the Limited Notice To Proceed (LNTP) phase of the Cernavoda NPP Units 3 and 4 Project. This financing will be contracted by Energonuclear S.A., the Project Company for the development of Units 3 and 4 Project, as borrower, and shall be backed by a shareholder guarantee from Nuclearelectrica.
Cernavoda NPP Units 3 and 4 Project is also undergoing the second phase of execution, Preliminary Works (Limited Notice to Proceed – LNTP), pursuing the following main goals: developing the engineering required to define the project; structuring and contracting of financing (by developing cost estimates and implementation schedules with a high degree of certainty); obtaining the favourable View of the European Commission further to the Project Notice, according to Article 43 of the EURATOM Treaty and obtaining a positive decision in accordance with the relevant European provisions on State Aid; adopting the Final Investment Decision for advancement to Stage III (Construction).
“The two financing agreements signed today with the banking syndicate arranged and led by J.P. Morgan SE are part of the financing strategy and are aimed at advancing, according to schedule, two of Nuclearelectrica’s strategic projects: Refurbishment of Unit 1 and Units 3 and 4. It is our objective to deliver safe, available energy as planned, no delays, no cost overruns. This partnership is a recognition of the robustness of both projects and a reconfirmation of the complex role nuclear energy is to play on the long run, which I call trust, and I thank J.P. Morgan SE and the banking institutions for their professionalism and partnership”. -Cosmin Ghita, Chief Executive Officer, Nuclearelectrica.