Petrom borrowed EUR 500 M from nine banks

The Petrom oil company took a EUR 500m loan from a bank consortium, the money being aimed at covering financial needs, future investments and potential returns on existing debts, Ziarul Financiar reports. Petrom borrowings this year, including the latest loan given by a consortium made up of nine international banks and their Romanian branches, come to over EUR 2 bln.

Still, Petrom says it did not give up on a capital increase, which market sources say, would be of EUR 1bln.

‘In the first four years, investments were backed by the rise in capital at the time the company went private and its cash flow. Over the last year, we began a funding program with the bank sector,’ Petrom CEO Mariana Gheorghe said, adding that the yearly average of capital investments the company made since its privatization in 2004 has been of EUR 1 bln. The consortium that lent Petrom the money consists of the following banks: Erste, UniCredit, Raiffeisen, La Caixa, EFG Eurobank, ING Bank, Marfin Egnatia Bank, Banca Romaneasca and Bawag P.S.K. Yesterday, Petrom’s capitalization was of EUR 3.37 bln.

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