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Press release

                        The National Power Grid Company Transelectrica SA notifies that on Thursday 16 January at 11:00 h bonds began being transacted following the favourable consultative endorsement of the Transaction Admission Commission and the Stock Exchange Council's approval.

The corporative bond emission of 200 million Lei has got 5 years' maturity and 6.1% interest rate per year. The loan is dedicated mainly to financing investments, increasing the interconnection capacity, extending and consolidating the Electricity Transmission Grid, as well as to re-financing certain balance financial bonds with a view to optimise the financing structure and diminish risks associated to cost fluctuations and devaluation of the national currency.  

The emission generated particular interest, thus proving the investors' confidence in the Company's business model and plans. The long term projects include aspects related to increased shareholder value; the development plans through investments and the vision of the Company's financial performance are solid arguments of the decision to get financing from the domestic capital market.  

This successful emission is the beginning of a series of such instruments, announced as intention at 900 million Lei, which does however not exclude launching programmes denominated in other currencies as well.

Transelectrica has been listed on the capital market since 29 August 2006, being the first Company of its profile to have been quoted on the Stock Exchange.

Stefan Doru- Bucataru, chairman of Transelectrica Directorate stated: "The Company's target is optimising direct and indirect costs with operations and investments financing, reduced risk of currency devaluation, improved cash flows in order to expedite investment programmes upgrading and refurbishing the equipment. Transelectrica makes long term investments (both as execution term and investment recovery time) into the Romanian Power System, respectively to upgrade its substations and networks and to increase the interconnection capacity with neighbouring countries. We have tested the market with this first bond emission in Lei and fixed interest rate in order to improve our financing strategy in the following years".

Increasing the interconnection capacity and participating to the projects of great European electricity transmission hubs (supported by funds established by the EU on purpose) are only a few of the steps Transelectrica took in order to cope with challenges. Developing and upgrading the electricity transmission grid (ETG), increasing the interconnection capacity with neighbouring countries and active participation to interconnections with energy markets in Central and Eastern Europe are measures meant to turn Transelectrica into a flexible operator of the electricity network able to deal with the new European context of the electricity market.

Transelectrica was the first success registered on the capital market, representing an example that determined enhanced mutual confidence between the State, investors and the Stock Exchange. Transelectrica is the operator of the national electricity transmission system and the state holds 58.69% of the Company shares through the Ministry of Public Finance. The Ownership Fund has got 13.5% of the shares while SIF Oltenia – 6.85%.


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