November 16 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said on Wednesday that it providing a working capital revolving loan of up to 30 million euro ($31.3 million) to Romania's Premier Energy, a gas distribution network operator and gas supplier.
The bank’s investment will finance the working capital needs of the company amidst rising gas prices triggered by the war on Ukraine, the EBRD said in a press release.
The loan will enable Premier Energy to to purchase gas and provide an uninterrupted supply to consumers in Romania in the upcoming winter, the bank added.
The transaction is is part of the EBRD’s Resilience and Livelihoods framework, which supports companies and countries affected by the war on Ukraine.
"The EBRD’s support will ensure uninterrupted provision of vital energy services, and at the same time contribute to Romania’s green transition," EBRD director and regional head for Romania and Bulgaria Mark Davis said.
The EBRD announced that it is considering the loan in August.
"This new working capital credit line is important as it provides stability in these uncertain times and will allow us to support our customers and hopefully continue to grow our energy business," Premier Energy CEO Jose Garza said.
"We are looking forward to building on this transaction, broadening and deepening our relationship with the EBRD not only in Romania, but also in the broader Balkan region as part of our ambitious and continuous efforts in the renewable and clean energy sector," Garza added.
Premier Energy SRL supplies gas to retail, industrial and commercial end-users in Romania. It also operates as the owner and operator of the gas distribution networks in and around Bucharest, the southern region, the western region, as well as smaller towns and villages in the northern part of Romania.
Premier Energy SRL is ultimately owned by Premier Energy PLC, a holding company incorporated in Cyprus, which owns gas and electricity infrastructure companies operating in Moldova and Romania.
In September, the EBRD announced that it plans to provide a $30 million loan to Moldovan electricity distribution system operator Premier Energy to finance its 2022-2025 investment programme.
($=0.959 euro)