Romgaz, the largest natural gas producer, has signed a 325 million euro financing agreement with Raiffeisen Bank for the partial financing of the acquisition of EMEPRL shares, which holds 50% of the rights and obligations related to the Neptun Deep perimeter
S.N.G.N. Romgaz S.A., the largest natural gas producer in Romania, announced today that it has signed a financing agreement worth EUR 325 million with Raiffeisen Bank S.A.
Romgaz will use the loan to partially finance the purchase price that will be paid for all shares issued by Exxon Mobile Exploration and Production Romania Limited (EMEPRL), which owns 50% of the rights and obligations related to the Neptun Deep perimeter.
The EUR 325 million loan facility has a maturity of five years and is linked to Romgaz’s overall financial performance. The facility, in which Raiffeisen Bank acts as a creditor, provides Romgaz with funding for its resource development plan, covering part of the purchase price of all shares issued by EMEPRL.
The General Manager of SNGN Romgaz SA, Aristotle Jude, stated: “The signing of this financing agreement is necessary to achieve an important objective assumed in the Romgaz Development Strategy for the period 2021-2030, respectively to complete the acquisition of EMEPRL shares holding 50% obligations related to the perimeter of Neptune Deep. It is a first step that proves our determination to maintain Romgaz as the most important player on the Romanian gas market and to position ourselves strategically in the current geopolitical context. The development and exploitation, as soon as possible, of the deposits with commercial potential from the Neptun Deep perimeter will ensure the addition to the Romanian natural gas production of considerable volumes that will support, without a doubt, the security in the country’s natural gas supply. ”
In his turn, the Economic Director of S.N.G.N Romgaz S.A., Răzvan Popescu, states: “The cooperation with the financial partners aims at ensuring the competitive financing of the acquisition of EMEPRL shares, Romgaz strategic investment objective, meant to really contribute to the consolidation of energy security. This agreement is the first stage of financing necessary for Romgaz in the context of the Neptun Deep project, and after the completion of the transaction for the acquisition of EMEPRL shares, we will start the formalities to ensure the future financing necessary for the Romgaz group to develop the Neptun Deep project. ”
“The € 325 million financing agreement we reached with Romgaz is an example of our commitment to supporting the transition to a greener economy, enabling companies to implement their sustainable strategies,” said Catalin Cepisca. Senior Director Raiffeisen Bank. “The transition to a zero-emission energy system is possible with strong energy standards, such as Romgaz, which ensures security of supply in the region throughout the process. We are delighted to be the main financing bank of the company and we consider that this significant facility is a clear indication of our support for the energy sector “, he concluded.
The conclusion of the financing contract was facilitated by the legal support of the Dentons law firms, representing S.N.G.N. Romgaz S.A. and Wolf Theiss, acting for Raiffeisen Bank’s creditor.