Landmark €500 Million Green Bond Issuance by Electrica Attracts EIB Support and Oversubscribes Tenfold

Landmark €500 Million Green Bond Issuance by Electrica Attracts EIB Support and Oversubscribes Tenfold

(IN BRIEF) Electrica has issued Romania’s first corporate green bond, raising €500 million with strong oversubscription—demand was more than ten times the supply. The bond, backed by investors including the EIB, will be listed in Luxembourg and Bucharest. Funds will support Electrica’s goal of building 1 000 MW of renewable generation and 900 MWh of storage by 2030 under its Green Financing Framework. EIB Vice‑President Ioannis Tsakiris hailed the deal as a market “ice breaker” that combines financial innovation with environmental impact. Electrica, serving around 4 million customers in Transylvania and Muntenia, sees this issuance as a key step in demonstrating corporate discipline and signaling Romania’s potential in sustainable finance. The five‑year, 4.566 % coupon bond carries a BBB rating from Fitch and was approved by Luxembourg’s CSSF on 10 July 2025.

(PRESS RELEASE) LUXEMBOURG, 18-Jul-2025 — /EuropaWire/ — Romanian energy company Electrica has successfully raised €500 million through the country’s inaugural corporate green bond offering, with the European Investment Bank (EIB) among the purchasers. The bond, which will trade on both the Luxembourg and Bucharest stock exchanges, saw investor demand exceed the available issuance by over tenfold, underscoring strong market enthusiasm for sustainable financing in Romania.

Under its Green Financing Framework, Electrica intends to channel the proceeds into expanding its portfolio of renewable electricity generation assets and developing energy storage facilities. The firm’s ambitious 2030 targets include achieving 1 000 MW of clean power capacity alongside 900 MWh of storage capability.

“This transaction breaks new ground for Romania’s financial markets,” remarked EIB Vice‑President Ioannis Tsakiris. “By marrying finance with environmental stewardship, Electrica’s green bond paves the way for broader participation in projects that underpin economic growth while combating climate change.”

Electrica, which serves roughly 4 million customers across Transylvania and Muntenia, is a leading force in electricity generation, supply, and distribution within Romania. “Issuing this green bond represents a defining milestone both for Electrica and for our national energy landscape,” added CEO Alexandru Chiriță. “Its success not only reflects our rigorous corporate governance and transparency, but also signals to international investors Romania’s budding prowess in sustainable finance.”

The five‑year bond carries a 4.566 % coupon and holds a BBB rating from Fitch Ratings. Regulatory approval was granted by Luxembourg’s Commission de Surveillance du Secteur Financier on 10 July 2025. This transaction exemplifies the EIB’s role in mobilizing capital market instruments that align with the EU taxonomy for sustainable activities and advance European Union policy objectives.

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SOURCE: European Investment Bank