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June 28, 2022

EBRD EUR 170 M loan for Turceni power plant

The EBRD is making a loan of EUR 170 million to Turceni, the largest lignite-fired power plant in Romania, to support its drive towards greater energy efficiency and competitiveness, a press release informs. The financing for the improvement and modernisation of one power generation unit at Turceni will reduce harmful greenhouse gas emissions and bolster its position in an increasingly competitive energy market.

The project, estimated at a total cost of EUR 224 million, will finance the design, procurement, commissioning and installation of equipment necessary for the upgrades of Unit 6. Once completed, the modernised unit will be ranked among the least carbon intensive such plants in Europe, thus enabling it to comply with the existing EU environmental standards.

The loan was oversubscribed, allowing the EBRD and Turceni to increase the financing from EUR 150 million to EUR 170 million. The EBRD will retain EUR 80 million with EUR 70 million to be syndicated to a group of commercial banks, consisting of Erste Bank, Societe Generale, UniCredit and Intesa Sanpaolo. The Black Sea Trade and Development Bank (BSTDB) will offer a parallel loan of EUR 20 million. The additional project costs will be covered from Turceni’s own funds.

“This financing of the rehabilitation and modernisation of Turceni’s unit 6 is important for Romania and is part of the Ministry’s broader programme to support its energy companies in raising funds from the financial markets,” said Adriean Videanu, Minister of Economy.

“The EBRD support for Romania’s further efforts to reform and improve the energy sector will help address the country’s urgent investment needs in this area. The level of commitment shown by lenders in the current financial climate is impressive. It will help Turceni make cost-effective gains in efficiency and strengthen best commercial practices, improving its competitive position on the Romanian and regional markets,” said Riccardo Puliti, EBRD Energy Business Group Director.

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