March 23 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said that it has lent 37 million euro ($40.3 million) to electricity distribution network operator Distributie Energie Electrica Romania (DEER), a wholly owned unit of local power supplier and distributor Electrica [BSE:EL].
DEER will use the funds to finance its liquidity needs in order to cover increasing costs and to continue providing electricity to Romanian consumers without interruptions, the EBRD said in a press release on Wednesday.
"We are happy to support DEER to cover its liquidity needs and continue its investments in improving grid efficiencies," said EBRD Regional Head of Romania and Bulgaria, Mark Davis.
"[...] continuing the partnership with the EBRD allows us, through this new term loan with a maturity of five years, to refinance a part of the price difference of electricity for covering network losses, aligned with the recovery of this difference through tariffs," said Electrica’s CEO, Alexandru Chirita.
Electrica Group, in which the Romanian state owns a stake of 48.8%, comprises seven companies. Its shares are listed on the Bucharest Stock Exchange and the London Stock Exchange. The group includes Electrica SA, Distributie Energie Electrica Romania, Electrica Frunizare, Electrica Serv. Electrica Productie Energie, Electrica Energie Verde, Sunwind Energy, New Trend Energy amd Green Energy Consultancy.
Blue-chip Electrica's shares traded 1.6% lower at 8.61 lei as of 0913 CET on Thursday, bourse data showed.
($=0.917743 euro)