The European Bank for Reconstruction and Development (EBRD) made new investments totalling EUR 592 million last year in Romania, which is 16.5% more than in 2013. However, the number of Romanian projects that received funding from EBRD decreased from 32 to 26, according to EBRD official data.

The EUR 592 million investments include loans to Romanian state-owned or private companies, loans to public authorities, as well as equity investments in local companies.

One of EBRD’s largest investments in Romania last year was the purchase of an 8% stake in electricity distributor Electrica, which was listed on the Bucharest Stock Exchange and on the London Stock Exchange in July 2014. EBRD bought shares worth EUR 75 million in the company’s EUR 444 million IPO in June and got involved in setting new corporate governance rules for the company, which is still 49% state-controlled.

EBRD also bought a 5% stake in Bucharest Stock Exchange, Romania’s stock market operator, pledging to help it develop into a financing alternative for the local economy.

Some of the largest loans granted by EBRD for projects in Romania were a EUR 130 million loan for electricity producer Complexul Energetic Oltenia, a EUR 57 million loan for Topolog-Dorobantu wind farm and a EUR 23 million loan for a new confectionery factory in Craiova, built by Turkish group Eti.

The total funding granted by the financial institution in all the countries where it’s active increased by 4.7% to EUR 8.9 billion, in 2014.

"Increasing the EBRD financing to EUR 8.9 billion from EUR 8.5 billion in 2013 occurred despite the strong decline of investments in Russia, following information from the bank's shareholders in July, that they are not considering new projects in this country," reads an EBRD statement.

EBRD’s investments in Russia went down three times, to EUR 608 million, but the financial institution significantly increased its investments in Turkey and Ukraine.

editor@romania-insider.com