Transgaz signed a syndicated loan contract for approximately 1.93 billion RON

Transgaz, the technical operator of the National Gas Transmission System, signed a syndicated loan contract for a total amount of 1.93 billion RON to ensure the financing of investment projects included in the National Gas Transmission System Development Plan.

UniCredit Bank successfully completed the coordination of a syndicated loan for Transgaz, acting as Mandated Lead Arranger, Bookrunner, Lender, Documentation and Payment Agent and Facility Agent. The banks participating in the transaction as Lead Arrangers are Banca Transilvania, Banca Comercială Română, Raiffeisen Bank, UniCredit Bank and CEC Bank.

Ion Sterian, general manager of Transgaz, declared: “We have always been focused on ensuring a competitive funding mix to finance the investment program so that we can achieve the best results, the best performance. The purpose of the syndicated loan is to ensure the financing/refinancing of expenses related to the strategic investment projects included in the National Gas Transmission System (NTS) Development Plan approved by ANRE, strategic investments supported by the Romanian Government and intended to contribute to the achievement of the objectives of sustainable and competitive development of the gas transmission infrastructure, to ensure and strengthen national, regional and European energy security and solidarity.

The funding source obtained together with other available Transgaz funding sources will be used both for strategic investment projects included in the NTS Development Plan and for projects that enable the connection to the gas transmission system of localities in Romania, with a direct impact on the improvement of the quality of life and the development of local and national economic and social infrastructure. It is of strategic importance for Black Sea gas extracted to be transmitted through the NTS to the Romanian and European markets, to increase the security of gas supply in Romania and the EU and guarantee the supply of natural gas to domestic and regional consumers.

Out of these projects I would like to mention: Tuzla – Podișor gas pipeline, BRUA Phase II, Ghercești – Jitaru; Prunișor – Orșova – Băile Herculane – Jupa gas transmission pipelines; DN 600 Mihai BravuSiliștea gas transmission pipeline and its changing into a piggable pipeline; Gas supply of Mintia Plant; Increasing the transmission capacity of the NTS and the security of gas supply of the Electrocentrale Ișalnița Branch and Electrocentrale Turceni Branch. Transgaz has also planned investments for the development of the NTS on new consumption routes to ensure the transmission of gas for newly established gas distribution systems and to supply new connected consumers, for the modernization and retechnologization of the NTS, investments it supports with its own funds.

The syndicated loan contract concluded with the consortium of Romanian banks, Banca Transilvania, Banca Comercială Română, Raiffeisen Bank, UniCredit Bank and CEC Bank, participating in the syndication procedure, proves the full confidence that Romanian banking institutions have in the ability of Transgaz management to turn projects into reliable investments. I am confident that, together with our financial partners, we will achieve the investment objectives undertaken, as the loan will substantially contribute to the implementation of the investments aimed at the development, modernization and expansion of the national gas transmission infrastructure”.

Raluca Popescu, Corporate Executive Vice President of UniCredit Bank said: ” Today, Transgaz S.A. is one of the most important companies in the national energy sector, it is the sole operator of the Romanian National Natural Gas Transmission System and ranks fourth in the top of the European Union’s natural gas transmission system operators, in terms of the length of the managed transmission infrastructure. It is a listed company and has a corporate governance system in place, which increases our confidence in the ability of the company’s management to effectively implement the national strategy in the field of domestic and international natural gas transmission. Due to its strategic importance, UniCredit Bank, together with other banks in Romania, is supporting its development and progress so that our country can take its rightful place in the European economy. We are all very happy when we manage to close a transaction that has a major impact on our economy, but also on the economies of the countries in the region.”