EUR 200 mn. loan from EIB to DEER - ELSA guarantee

Societatea Energetica Electrica SA

17 December 2024

 

To:                  Romanian Financial Supervisory Authority (FSA)

                        Bucharest Stock Exchange (BSE)

                        London Stock Exchange (LSE)

Current report in compliance with the Law 24/2017 on issuers of financial instruments and market operations, FSA Regulation no. 5/2018 on issuers of financial instruments and market operations, and the Bucharest Stock Exchange Code

Report date:  17 December 2024

Company name: Societatea Energetica Electrica S.A. (Electrica)

Headquarters: 9 Grigore Alexandrescu Street, 1^st District, Bucharest, Romania

Phone/fax no.: 004-021-2085999/ 004-021-2085998

Fiscal Code: RO 13267221

Trade Register registration number: J40/7425/2000

Subscribed and paid in share capital: RON 3,395,530,040

Regulated market where the issued securities are traded: Bucharest Stock Exchange (BSE) and London Stock Exchange (LSE)

Significant events to be reported: DEER contracted a EUR 200 mn. loan for investments from EIB, with Electrica's guarantee

Electrica informs its shareholders and investors about the signing by Distributie Energie Electrica Romania (DEER) - the distribution operator within Electrica Group - of a EUR 200 mn loan from European Investment Bank (EIB).

The purpose of the loan is to finance DEER's investment plan for the period 2024-2026, with the scope to upgrade its electricity distribution network covering 40% of Romania and serving approximately 4 million households and businesses. It can be disbursed in EUR or RON and will support DEER to offer better services to its users, improve energy efficiency, and facilitate the connection of renewable energy sources.

The EIB Loan is guaranteed by Electrica SA (ELSA) through a Professional Payment Guarantee, valid until the full fulfillment of the obligations arising from the agreement/ guarantee, with a value of the guarantee of maximum EUR 240,000,000 or the equivalent in RON, as the ELSA's shareholders approved in the Extraordinary General Meeting of Shareholders on 11 December 2024.

"Our investment reduces the risks of supply interruptions and contributes to energy efficiency and sustainability," said EIB Vice-President Ioannis Tsakiris. "Electrica's smarter and more resilient infrastructure will mean smoother operations for served businesses, better living conditions for people, and generally a greener environment for all."

The electricity network in Romania is in urgent need of investment to address aging infrastructure in the face of growing demand for electricity. The operation aligns with the RePowerEU plan to support affordable, secure and sustainable energy for Europe, and contributes to the Bank's objectives for cohesion and climate action

"In times when we require funding for our ambitious development, the EIB's support is a clear sign to the market that we are reliable and competitive," said Electrica Chief Executive Officer Alexandru Chirita. "We are also happy to contribute to the energy and climate plans of Romania and the EU."

Contact: [e-mail]; [phone]

CEO

Alexandru Chirita

 

END