Romanian energy group Electrica (BVB: EL) on Friday secured shareholder approval for a series of initiatives aimed at strengthening its financial position and boosting its renewable energy portfolio, including the issuance of green bonds worth up to EUR 500 million and major investments in solar power projects.

The green bond issuance, which could raise as much as half a billion euros, is a core part of Electrica’s strategy to finance its transition to sustainable energy, aligning with growing EU pressure on energy companies to reduce carbon emissions. Electrica, Romania’s largest electricity distributor, is moving to expand its investments in green energy projects to secure long-term growth and resilience in a shifting energy landscape.

In addition to the green bond plan, shareholders approved a syndicated credit facility worth RON 3.1 billion (approx. EUR 625 million), which will be used to refinance existing debts and support Electrica's investment strategy. The funding boost is expected to provide Electrica with a more flexible financial structure as it embarks on new renewable energy and modernization projects.

The shareholder meeting also cleared the path for two major photovoltaic projects designed to expand Electrica’s footprint in solar energy, which will require total investments of EUR 83 million. Both projects are located in North-Western Romania, in Satu Mare and Bihor counties, and will have a combined projected capacity of close to 140 MW. The Bihor solar park also includes an option for integrated energy storage to aid in grid stability and enhance energy balancing.

“These approvals mark a critical step in Electrica’s journey towards becoming a leader in sustainable energy. The green bond issuance and credit facility provide us with the financial firepower to meet our ambitious goals, while the solar projects bolster our position in renewable energy production,” said Electrica CEO Alexandru Chiriță.

With around 3.9 million users across Romania, Electrica is positioning itself not only as a vital energy provider but also as a proponent of the country’s energy transition efforts. The company’s recent moves underscore its commitment to reducing environmental impact and supporting national energy security through clean energy initiatives.

Electrica, listed on the Bucharest and London Stock Exchanges, has seen its shares gain over 40% over the last 12 months, double the growth recorded by the BVB’s flagship index BET (+19.6% y-o-y).

editor@romania-insider.com

(Photo source: Electrica Facebook page)