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The bank participated in Romania’s largest ever IPO by acquiring the company’s minority stake for more than RON320m (€75m).
Headquartered in Bucharest, Electrica serves about 3.5 million customers in north-western, central, southern and south-eastern Romania.
The bank’s move will help finance the company’s investment strategy to upgrade its infrastructure.
EBRD said its funds will also help to make Electrica’s network more flexible with respect to the recent increase in Romania’s variable renewable energy capacity.
The investment allows the bank to support a plan to enhance corporate governance, internal control systems and environmental management practices.
Electrica and the EBRD have also signed a framework agreement to implement a corporate governance action plan and an environmental and social action plan.
EBRD power and energy director Nandita Parshad said the bank’s participation in the IPO demonstrates its commitment to support the government’s plans for increased privatisation of the energy sector.
"We will work with the company towards the successful implementation of an ambitious set of measures to align its corporate governance with international standards. This will provide additional comfort and confidence to potential future investors," Parshad added.
The EBRD invested about €6.7bn across 360 projects in Romania so far.
Image: Electricity distribution firm S.C. Electrica serves about 3.5 million customers in north-western, central, southern and south-eastern Romania. Photo: Courtesy of franky242/FreeDigitalPhotos.net.
