Swissinfo: Transgaz May Sell Bonds to Build Gas Pipeline to Central Europe

Romania’s Transgaz SA may sell bonds as early as this fall to finance construction of a gas pipeline to link the Balkan country’s southern region to central Europe, the head of the company said.

The natural-gas grid operator will apply for European Union funding in July to back the 560 million-euro ($639 million) project called BRUA, linking Bulgaria, Romania, Hungary and Austria, Chief Executive Officer Petru Vaduva said in an interview in Bucharest on Thursday. If the EU funds are approved, Transgaz will need to cover half the cost from its own resources, he said.

“If the European co-financing is approved, then we’ll probably have to prepare our own funding 12 months ahead of the construction, so we might issue the bonds in the fall to use the money in March,” Vaduva said.

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