October 30 (SeeNews) - Romanian gas transmission company Transgaz [BSE:TGN] announced that it is has signed a 360 million lei ($87 million/ 74 million euro) loan deal with local lender Banca Comerciala Romana (BCR).
Transgaz will use the loan to finance two investment projects, it said in a statement filled with the Bucharest Stock Exchange on Thursday.
The company plans to finance the development of the National Gas Transmission System (NGTS) in the northeastern part of Romania, on the Onesti – Gheraesti – Letcani route. Also, it aims to complete the interconnection between the NGTS and international gas transmission pipeline T1, as well as reverse flow at Isaccea Phase II, between Onesti and Silistea.
Transgaz announced in September that it is seeking a bank loan of 360 million lei with a term of 13 years, a grace period of 1 year, payable in semi-annual installments. The deadline for submitting bids by interested banks was October 8.
In mid-July, Transgaz announced that it is borrowing 300 million lei from local lender Banca Transilvania to finance its working capital needs. The loan contract has a duration of two years.
Transgaz shares traded 0.35% lower at 284 lei on the Bucharest Stock Exchange as at 0910 CET on Friday.
BCR is a member of Austria's Erste Group since 2006 and provides universal banking operations, including retail, corporate and investment banking, treasury and capital markets, leasing and asset management services.
(1 euro=4.8747 lei)
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