Hidroelectrica may drop eurobonds

Hidroelectrica may give up on the 120-150 million eurobond issue scheduled for release on the international markets early this year and meant to raise cash for retooling several power units, corporate sources said. “The experience of other companies on the energy market shows we could get better terms for financing our projects if we take loans from banks or international syndicates. We will try to find cash for investments from our own sources, loans and supplier credits, under partnership deals,” the quoted sources added. The Hidroelectrica management last August said it was planning to release a bond issue in the fall of 2002. The company officials later announced they would wait for Transelectrica to issue eurobonds first and then enter the international capital market early in 2003. Transelectrica, however, decided to postpone the 100 million eurobond issue early in December 2002, considering it would get credits to cover this amount from the World Bank and the European Bank for Reconstruction and Development, under better terms. ZF