27 C
August 13, 2022

KREIF contracts 119 mln. lei financing from OTP Bank for the development of new gas stations

The Kazakh-Romanian Energy Investment Fund (KREIF) recently contracted a financing in the amount of 119 mln. lei (about 24.75 mln. USD) for the speedup of the retail program – the development of new fuel distribution stations, from OTP Bank Romania.

“KMG International continues its projects undertaken through the Kazakh-Romanian Energy Investment Fund and respects its obligations towards its partners for the development of the energy sector, with the support and trust of the financing institution from Romania, such as OTP Bank. KMG International contributes to the consolidation of this sector, both by contracting equipment and services on the internal level, and by creating new jobs and new sources of revenue generation to the state budget”, says Askar Abilov, Chief Financial Officer and Risk Management of the KMG International Group (photo).

The financing granted to KMG Rompetrol Development, the investment vehicle of the Fund for the retail part, has a maturity of 8 years and is intended to refinance the development of 23 new gas stations. Operated by Rompetrol Downstream under the Rompetrol brand, they will sell exclusively the Efix car fuels range – produced by the Petromidia refinery from Navodari.

„This financing granted to a strategically important brand in the industry and in the energy sector on the local level, such as Rompetrol, consolidated our role in the support of the local economy. The size of this investment project gives us the opportunity to contribute to the development of a sector of national importance and of the local network of stations to a new standard, for the benefit of the Romanian consumer”, said Roxana Hidan, Deputy General Manager, Coordinator of Business Division of OTP Bank Romania.

The Kazakh-Romanian Energy Investment Fund currently owns a network of 40 gas stations and aims to expand it by 44 new units over the next five years. The 84 gas stations of the Fund in Romania will ensure the creation of over 1,000 new jobs, having over 5,000 people involved in various phases of development (design, execution, construction) and over 1,200 commercial partners.

OTP Bank Romania recently took part, as a co-financing bank in granting a syndicated loan in the amount of 83 mln. of euro for another KREIF project – the construction of a new cogeneration plant on the Petromidia Navodari platform. The financing granted to Rompetrol Energy (the investment vehicle of the Fund for this project) represents about 65% of the value necessary to make the investment, which is estimated at 148 mln. USD.

The estimated deadline for the commissioning of the cogeneration plant is the end of July 2023.

Established in October 2018, KREIF is owned by KMG International and the Romanian Govrnment through the Energy Participation Management Company – SAPE, its main and strategic objective pursuing the development of energy projects in Romania. At the same time, the two shareholders – KMGI and the Romanian Government, are also present in such companies as Uzina Termoelectrica Midia and Rompetrol Rafinare – the operator of the Petromidia refinery in Navodari and Vega refinery in Ploiești, but also of the only polymer producer in Romania.


Related posts

National Institute of Statistics to release tribute volume with last 100 years official data

Nine O' Clock

KYC technology provider Qoobiss enables Credius to offer credit loans and verify users’ identity by selfie


Energy Ministry takes steps for start of BRUA southern corridor

Nine O' Clock