Termoelectrica SA, the leading electricity producer and the third-largest company in Romania will contract a $200 million loan in order to build the necessary fuel stocks for the winter of 2003/2004, company officials say.
The loan will be secured by the Romanian State and has already sparked the interest of certain international banks operating in Romania such as ING or Citibank, Termoelectrica officials say. #leadend#
"The $200 million will come in form of a set of loans worth $160 million for Electrocentrale Bucharest and $40 million for Termoelectrica, which will be secured by the State. We have already contacted the representatives of banks that may head the consortium in case a syndicated loan is preferred," Termoelectrica officials told Ziarul Financiar.
The money is needed to buy 700 million cubic metres of natural gases and about 500,000 tonnes of imported black oil, most of which is to be used by Termoelectrica's Electrocentrale Bucharest branch.
Termoelectrica SA, which supplies approximately two thirds of the total energy used on the Romanian market was reorganised and divided into four branches - Bucharest, Turceni, Rovinari and Deva last year. The company imports black oil and natural gases every year in order to build the necessary raw material stocks for its productive capacities. To that end, it needs loans to pay for the imported fuel. It remains to be seen at what interest and for how long will the company borrow this year, given that it has just had a round of preliminary talks with a number of bank representatives. Termoelectrica in December 2002 borrowed $200 million at 5.4% from the international capital markets following a bond issue brokered by JP Morgan investment bank and secured by the Romanian State in order to buy fuel.
