Romania Transelectrica Has Maxed Out Its Credit Card
Romanian state-run power grid operator Transelectrica (TEL.RO) has maxed out its capacity to borrow money from banks and is looking for alternative resources to finance its planned investments, including higher tariffs or government subsidies.
Transelectrica’s capacity to use account receivables as collateral is close to maximum levels and the possibility to obtain new loans from international creditors is rather limited, the company said in its prospectus to a 15% secondary offering on the Bucharest Stock Exchange.
“Given the estimated financing deficit… we could consider adjusting the tariffs in the future,” the document noted.
The company also contemplates obtaining government subsidies for its investments planned over the next years, according to the document.
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