UniCredit Bank Coordinates RON 1.93B Syndicated Loan For Transgaz

SNTGN  TRANSGAZ S.A., the technical operator of the National Natural Gas Transportation System, signed a syndicated credit facility in the total amount of RON 1.93 billion to support the Development Plan of the National Natural Gas Transportation System.   UniCredit Bank has successfully completed the coordination of a syndicated loan for TRANSGAZ as Mandated Principal Arranger, Coordinator, Bookrunner, Lender, Documentation and Payment Agent and Facility Agent. Banks participating in the transaction, alongside UniCredit Bank, were: Banca Comerciala Romana, Banca Transilvania, Raiffeisen Bank and CEC Bank as Principal Arrangers.   The projects financed through this syndicated loan have a strategic impact both for the gas industry and for the energy market in Romania and consist in the construction of gas pipelines to take over the gases that will be extracted from the Black Sea, but not only, supply pipes and transport that will lead to an increase in gas supply capacity in our country, etc.   Ion Sterian, General Manager of SNTGN Transgaz SA, said: “We have always been concerned with ensuring a competitive financing mix for financing the investment program so that we can achieve the best results, the best performances. The purpose of the syndicated loan is to ensure the financing/refinancing of the expenses related to the strategic investment projects contained in the Natural Gas National Transport System Development Plan (SNT) approved by ANRE, strategic investments supported by the Government of Romania and intended to contribute in a real way to the achievement of the objectives sustainable and competitive development of the gas transport infrastructure, to ensure and strengthen national, regional and European energy security and solidarity. The source of financing contracted together with other sources of financing available Transgaz will be used both for strategic investment projects included in the Development Plan of SNT and projects that allow the connection to the natural gas transmission system of the localities on the territory of Romania, with direct impact on the increase of the quality of life and the development of the local and national economic and social infrastructure. It is of strategic importance that the natural gas extracted from the Black Sea be transported through the NTS to the Romanian and European market, in order to increase the security of natural gas supply in Romania and the EU and to guarantee the natural gas supply of domestic and regional consumers. Among these projects I mention: Tuzla-Podisor gas pipeline, BRUA phase II, natural gas transport pipelines Ghercesti – Jitaru; Prunisor – Orsova – Baile Herculane – Jupa; Natural gas transport pipeline DN 600 Mihai Bravu-Silistea and the transformation into a pipeline; Natural gas supply of the Mintia cogeneration plant; Increasing the transmission capacity of SNT and the security of natural gas supply of the Isalnita Electrocentral Branch and the Turceni Electrocentral Branch. Transgaz also has scheduled investments for the development of SNT on new consumption directions in order to ensure the transport of gases intended for newly established natural gas distribution systems and the supply of new connected consumers, for the modernization and re-technology of SNT, investments that it supports from its own funds. The syndicated loan agreement, concluded with the consortium of Romanian banks, Banca Transilvania, Banca Comerciala Romana, Raiffeisen Bank, UniCredit Bank and CEC Bank, participating in the syndication procedure, proves the full confidence that the banking institutions in Romania have in the ability of the Transgaz management to to turn projects into definite investments. I trust that, together with our financial partners, we will achieve the assumed investment objectives, the loan contributing substantially to the implementation of investments intended for the development, modernization and expansion of the national natural gas transport infrastructure.” “Transgaz S.A. is today one of the most important companies in the national energy sector, is the only operator of the National Natural Gas Transport System in Romania and occupies the fourth position in the top of the natural gas transport and system operators in the European Union, according to the length of the managed transport infrastructure. Transgaz is a listed company on the stock exchange, which increases our confidence in the ability of the company’s management to effectively implement the national strategy in the field of domestic and international natural gas transportation. Due to its strategic importance, UniCredit Bank, together with other Romanian banks, supports its development and progress, so that our country occupies the place it deserves in the European economy. We are all very happy when we manage to conclude a transaction that has a major impact on our economy, but also on the countries in the region.” said Raluca Popescu, Corporate Executive Vice President of UniCredit Bank.   Mihaela Petraru, Large Corporate Director, Financial Institutions and Public Sector at UniCredit Bank added: “We congratulate TRANSGAZ for the successful completion of its first syndicated transaction, an example of good practice for the development of important projects for Romania. By arranging this syndicated financing, UniCredit Bank continues to develop and make available its technical expertise for the investments of our country’s strategic companies.”