Romanian power producer Electrica has made history by becoming the first company in Romania to issue a green bond, successfully completing a €500 million operation, with the European Investment Bank (EIB) among the buyers. The demand from investors for the bond—set to be listed on the Luxembourg and Bucharest stock exchanges—surpassed the initial offering by more than tenfold at the final price.

Source: European Investment Bank

Funding for Renewable Energy Expansion

Electrica plans to utilize the funds raised to enhance its renewable electricity generation and energy storage capabilities, in accordance with the company’s Green Financing Framework. By 2030, Electrica aims to achieve a generation capacity of 1,000 megawatts of renewable energy and to store 900 megawatt-hours (MWh) of electricity.

This issuance is an ice breaker for the Romanian market. The Electrica operation is at the intersection of finance and sustainability, encouraging all to think green. It is a significant project because driving funds towards environmentally sustainable projects is at the heart of fostering economic growth and contributing to the fight against climate change.

^{EIB Vice-President Ioannis Tsakiris}

Market Presence and Impact

As a significant player in the Romanian electricity sector, Electrica serves approximately 4 million customers, predominantly in the regions of Transylvania and Muntenia.

This transaction showcases the EIB’s commitment to supporting green investments that align with the European Union taxonomy for sustainable activities, utilizing capital market instruments that contribute to EU policy objectives.

Bond Details

Electrica’s green bond features a five-year maturity, an interest rate of 4.566%, and has received a BBB rating from Fitch Ratings. The planned issuance received approval from the Commission de Surveillance du Secteur Financier in Luxembourg on July 10, 2025.