BSTDB participates in environmental loan to Petrom (Romania)
Press Release | 28-Apr-2009
BSTDB will make available a 7-year €25 million loan to finance an environmental investment programme of Petrom S.A., a leading Romanian oil and gas company.
The Petrom’s environmental investment program includes several projects for pollution clean-up, pipeline replacement, health and safety measures that lead to increased energy efficiency.
The funding of the investment program totaling € 475 million is arranged by EBRD and includes also loans from a group of commercial banks.
“As a development bank, BSTDB is happy to support Petrom to rehabilitate the environmental, health and safety performance of its facilities that will reduce the industry’s impact on the environment” said Andrey Kondakov, Vice-President Banking signing the loan agreement.
Along with its important environmental and developmental impact, the operation represents co-financing by two IFIs – EBRD and BSTDB - with commercial banks at the time of credit crunch.
The BSTDB business relationship with Petrom S.A. goes back more than seven years. The previous BSTDB loan has been provided to the Company in 2002 and helped achieve its privatization.
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Petrom S.A. is the largest company in Romania established in 1997 and privatized in 2004. The Company is majority owned by OMV- the national Austrian oil and gas company (51%), while 41% of shares is held by the Romanian government and a state owned fund, with the rest owned by EBRD and in free-float. Engaged in oil and gas exploration, production and refining, power generation and production of chemicals, the Company also develops operations in BSTDB member countries - Bulgaria, Moldova, Russia and in other countries.
The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Türkiye, and Ukraine. The BSTDB headquarters is in Thessaloniki, Greece. BSTDB supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects and trade financing in the public and private sectors in its member countries. The recently increased authorized capital of the Bank is SDR 3 billion (approx. USD 4,85 billion). BSTDB is rated Long Term Baa1 with positive outlook and Short Term P2 by Moody’s.