Romania's Transgaz Seeks $88mn Loan

Romanian gas transmission system operator Transgaz said on September 10 it was seeking a lei 360mn ($88mn) bank loan to fund its investments.

The company wants a 13-year loan with a 1-year grace period, to be paid in semi-annual tranches. It has not decided whether it wants fixed or variable interest.

Transgaz has invited banks to file bids by October 8. It aims to select a winner on October 12 and sign a loan agreement on October 21.

Among Transgaz's main investments is the construction of its section of the Brua pipeline due to run from Bulgaria through Romania and Hungary to Austria, and the Ungheni-Chisinau pipeline to flow Romanian gas to Moldova.

In mid-July the operator said it was borrowing lei 300mn from Romanian lender Banca Transilvania. It sold a 25% stake in the Ungheni-Chisinau pipeline to the European Bank for Reconstruction and Development for $24mn.