Romanian electricity supplier and distributor Electrica is looking to issue one or more green bonds in 2025-2026, targeting a total value of €500 million, alongside a €620 million credit facility. According to a report by Eurelectric, Romania’s electricity distribution networks require total investments of €1.2 billion annually until 2050. The country’s four electricity distribution operators have submitted investment projects exceeding €3 billion for partial funding under the Modernization Fund, although most investments will come from the distributors’ own resources. Electrica has allocated approximately €220 million for investments this year.
The planned bonds may be issued in both local currency (lei) and other currencies, with the option to enter the Romanian capital market or a foreign market. They will have a flexible structure featuring either fixed or variable interest rates, with a maximum maturity of up to ten years, aimed at institutional investors.
In the first half of 2024, Electrica reported a net profit of €20.4 million, down €8 million from €28.4 million in the same period last year, marking a decline of 28.3%. However, the Electrica Group experienced a 6% increase in EBITDA compared to the first half of 2023, driven by effective operational optimization strategies. Revenue from the distribution segment rose by 15%, fueled by increased regulated tariffs and higher electricity volumes distributed, reaching €448 million.
Despite these gains, the overall volume of electricity supplied to final customers in the retail market fell by 3.1% year-on-year, totaling 3.8 TWh during the first half of the year.
