The Kazakh-Romanian Energy Investment Fund has closed a €83 million (about $89.1 million) syndicated loan for financing the construction of a new cogeneration plant on the Petromidia Refinery platform. The financing banks are Banca Comerciala Romana as mandated lead arranger, bookrunner,...show more
The Kazakh-Romanian Energy Investment Fund has closed a €83 million (about $89.1 million) syndicated loan for financing the construction of a new cogeneration plant on the Petromidia Refinery platform.
The financing banks are Banca Comerciala Romana as mandated lead arranger, bookrunner, documentation, facility and security agent; together with Raiffeisen Bank Romania, Raiffeisen Bank International, Alpha Bank Romania, OTP Bank Romania, OTP Bank and Garanti Bank Romania as mandated lead arrangers.
The recently accessed by KREIF credit represents over 65% of the amount, necessary for implementing the investment project, estimated at a total value of $148 million, the financing benefiting of a grace period until January 2024 – past six months after commissioning of the plant. The reimbursement period is five years with a maturity term at the end of January 2029.
The brownfield type investment comprises the assets of Uzina Termoelectrica Midia and its staff for operating the existing equipment and of the new power plant. The estimated deadline for putting into operation the cogeneration plant is due to July 2023.
Through Rompetrol Energy, the Investment Fund has selected the Calik Energy company as general contractor of the project. Ithas started the execution of the contract in June last year by initiating designing activities, as well as by executing a series of works, such as demolition in June of the 150 meters height chimney at Midia Thermal Power Plant and of the old turbine house, decommissioned over ten years ago, preparation of the land plot before construction, construction of foundations for new turbines, which are currently in the process of manufacturing at the producer.
The new facility for combined production of electrical and thermal power will be mainly fuelled by natural gas and will partially use (up to 25%) the fuel gas obtained from refining technological processes. The efficiency level of the plant will be very high, reaching 92%.
The majority stake of the Rompetrol Energy company is owned by the Kazakh-Romanian Energy Investment Fund together with Rominserv and Midia Thermal Power Plant.show less