BUCHAREST - Societatea Energetica Electrica S.A. (BSE:EL), a leading Romanian power company, announced on Wednesday that its Extraordinary General Meeting of Shareholders (EGMS) has approved a series of financial measures, including a significant loan guarantee and the extension of existing credit facilities.
During the EGMS, which achieved a quorum of 88.2396% of total voting rights, shareholders authorized the provision of a guarantee for a term loan of up to EUR 200 million that its subsidiary, Distributie Energie Electrica Romania S.A. (DEER), plans to contract from the European Investment Bank (EIB). This loan is intended to support DEER's investment plan for the period 2025-2027. Electrica will provide the guarantee, which may reach a maximum of EUR 240 million, through an independent first call guarantee or similar instrument.
Additionally, the shareholders empowered Electrica's Board of Directors to undertake all necessary actions to initiate and finalize the guarantee operation. This includes full representation before banks and financial institutions, negotiation and acceptance of contractual clauses, and the signing of related contracts.
The meeting also ratified the signing of an addendum to a RON 450 million Facility Agreement dated November 3, 2021, with Erste Group Bank AG (OTC:EBKDY) and Raiffeisen Bank S.A. The addendum extends the termination date by four years and the availability period by one year.
Further, the Board of Directors was empowered to handle all matters related to the Facility Agreement, including potential negotiations and acceptance of guarantee conditions. They may also delegate the execution of operational activities to Electrica's executive management.
These resolutions reflect Electrica's strategic financial planning and commitment to securing and managing resources for its investment programs. The information provided is based on a press release statement from Electrica and has been reported in compliance with market operation regulations.
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