EBRD to offer a EUR 200mln loan for the upgrade of Turceni power plant

The European Bank for Reconstruction and Development (EBRD) will contribute, under a syndicated loan scheme worth EUR 200mln, to finance a modernization and upgrade project worth EUR 266mln at Turceni power plant (Gorj County) of Oltenia Energy Complex. The financing scheme involves syndicating the EUR 200mln loan by commercial banks, with EBRD’s participation, according to a communique of the financial institution. Its contribution to the loan has not been specified. The money will be used including for restructuring and refinancing a loan of the same type, worth EUR 150mln, arranged in 2009 by EBRD for EC Turceni. Turceni power plant was included in May last year in a new company, Oltenia Energy Complex (EC Oltenia), which also took over EC Craiova, EC Rovinari and the National Company of Lignite Oltenia. The agreement from 2009 involved a contribution of EUR 80mln from EBRD, with the syndication of the difference, EUR 70mln, by commercial banks. Besides the refinancing of the loan from 4 years ago, the project involves the modernization of the energy group 6 from EC Turceni, in order to increase the efficiency of the unit, to reduce polluting emissions and implement a modern automation and control system. Oltenia Energy Complex has a registered capital of RON 1.27bn. The state owns through the Ministry of Economy 77.17% of the shares, while the Property Fund (BSE: FP) owns a 21.53% stake. A stake accounting for 12% of EC Oltenia shares will be listed on the Bucharest Stock Exchange, following an IPO. The offer will be brokered by the consortium consisting of Swiss Capital and BRD.