Three banks for Termoelectrica's loan

The consortium comprising Bank Austria Creditanstalt, ABN Amro Bank Romania and Alpha Bank Romania will broker two syndicated loans contracted from the international market for Electrocentrale Bucharest and Termoelectrica worth $200 million together.

The two loans, $160 million for Electrocentrale Bucharest and $40 million for Termoelectrica will provide the financing that will enable the two companies to complete their stocks of fuels – black oil and natural gases required by the operation of their stations throughout the winter of 2003-2004.

The loan will be secured by the State. The money is needed to buy 700 million cubic metres of natural gases and approximately 500,000 tonnes of black oil from abroad, with most of the latter set to be used by the thermal and thermoelectric power producer’s Electrocentrale Bucharest branch.

Termoelectrica imports black oil and natural gases every year in order to build the raw material stocks in line with the productive capacity of its stations. The company borrowed $200 million from the international capital market in December 2002, following a bond issue underwritten by investment bank JP Morgan and secured by the Romanian State. The money was aimed at fuel purchase and the interest paid on the loan was 5.4% a year. At the same time, the 18 stations Termoelectrica transferred to the local authorities in 2002 got $120 million at the end of last year following another bond issue due in five years and underwritten by JP Morgan and HVB Bank. The annual interest in this case is 5.6% and the money was again used for buying fuels. The loan was secured by the Finance Ministry.

Termoelectrica is fully controlled by the State and is not included on the list of upcoming privatisation projects. It covers 55% of the national electrical power production and 23% of the thermal power production. It is now making investments to boost efficiency and comply with EU’s environmental standards. miruna.lebedencu@zf.ro