Electrica prices inaugural €500 million green bonds amid strong demand

Published 07/07/2025, 17:12
Electrica prices inaugural €500 million green bonds amid strong demand

BUCHAREST - Societatea Energetică Electrica S.A. (Electrica) has priced its inaugural €500 million green bond offering, the company announced Monday in a press release.

The senior unsecured bonds have a 5-year maturity and were priced at a yield of 4.566% (MS + 230 bps). Investor demand exceeded supply by more than 11.5 times, which the company described as a record for bond issuances by Romanian companies.

Proceeds will finance or refinance eligible green projects as defined in Electrica’s Green Finance Framework, primarily focused on developing green production and electricity storage capacity.

The bonds carry a BBB- rating from Fitch, matching the issuer’s rating, and are expected to be listed on both the Luxembourg Stock Exchange and subsequently on the Bucharest Stock Exchange.

Alexandru Chirita, Chief Executive Officer of Electrica, called it "the biggest corporate green bond issuance in Romania," excluding financial institutions. The company aims to develop 1,000 MW of installed capacity by 2030, along with 900 MWh of energy storage.

A syndicate of banks assisted with the transaction, including Banca Comerciala Romana, BNP PARIBAS, Citi, ING, J.P. Morgan and Raiffeisen Bank International as Joint Global Coordinators and Joint Bookrunners, alongside BT Capital Partners (WA:CPAP), IMI-Intesa Sanpaolo, Societe Generale (OTC:SCGLY) and UniCredit as Joint Bookrunners.

The bonds are not intended for private individuals who are Romanian tax residents and are being offered outside the United States in offshore transactions in compliance with Regulation S under the U.S. Securities Act.

The final prospectus will be published on the Luxembourg Stock Exchange and issuer’s websites after approval by Luxembourg’s financial regulator CSSF.

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