Electrica's green bonds, worth 500 million lei, debut this week on the BVB

The first green bond issue of energy supplier and distributor Electrica will debut on July 30 on the Bucharest Stock Exchange (BVB), according to information from our capital market operator.

The bonds, worth 500 million euros, were launched earlier this month, following an offer that was oversubscribed 11.5 times, with the European Investment Bank among investors. The bonds are unsecured, have a five-year maturity, an annual interest rate of 4.566% and have already been listed on the Luxembourg stock exchange, according to reports from the BVB.

Alexandru Chiriţă, Chief Executive Officer of Electrica, says; "This inaugural green bond issuance marks a significant milestone for both Electrica and Romania. It is not only Electrica's first bond issuance, but also the largest corporate green bond issuance in Romania, excluding financial institutions. It demonstrates our commitment to sustainable growth and environmental protection, as well as our ability to attract significant investor interest.”

The funds raised through the bond issuance will be used to finance and/or refinance the company's eligible green projects, mainly aimed at developing the Electrica Group's green production and electricity storage capacity. The company's objective for 2030 is to develop a production capacity of 1,000 MW and a storage capacity of 900 MWh.

The bond rating of the electricity supplier and distributor is BBB- with a stable outlook, according to Fitch Ratings.

Electrica reported growth across all segments in its first quarter 2025 financial report, driven by higher distribution tariffs and higher volumes of distributed and supplied energy. Overall, the issuer reported operating income of nearly 3.2 billion lei, up 24% year-on-year, while net profit reached 196 million lei, up 53%. The issuer will present its second quarter results report on August 28. The Romanian State, through the Ministry of Energy, owns 49.8% of the electricity supplier and distributor, whose stock market valuation is 5.7 billion lei.