By Vanora Bennett
Highlights
- EBRD becomes a minority shareholder in Premier Energy PLC in initial public offering
- Bank buys 11 per cent of offering, bringing 3.2 per cent ownership of the company
- IPO proceeds to invest in renewable energy generation in Romania and Moldova
The European Bank for Reconstruction and Development is taking an equity stake in Premier Energy PLC, one of the fastest-growing vertically integrated energy infrastructure companies in southern and eastern Europe, to support investments in renewable energy generation capacity in Romania and Moldova.
The EBRD bought 11 per cent of shares offered at the initial public offering (IPO) of Premier Energy, a company incorporated in Cyprus, following an investment of RON 77 million ( 15.5 million). The shares will be listed on the Bucharest Stock Exchange. The EBRD investment is expected to represent just over three per cent of the company post-IPO.
The transaction supports both Romania's and the EBRD's green targets.
Proceeds from the EBRD's participation in the IPO will be allocated towards building new renewable energy capacity primarily in Romania, and the project pipeline is estimated to result in more than 168,000 tonnes annual carbon dioxide emissions reductions.
The EBRD, a leader in climate finance, is committed to supporting Romania's and the company's green energy transition.
EBRD participation was important for the success of the IPO, anchoring the issuance and attracting other investors. The EBRD will support the client in taking climate action, moving along a low carbon transition pathway, and making corporate governance improvements. Premier will also improve its standards for promoting gender equality.
Grzegorz Zielinski, Director, Energy Europe at the EBRD, said: "We are excited to partner with Premier Energy and support its renewables growth journey. Premier Energy's green energy transition strategy aligns perfectly with the EBRD's priorities in the region."
Tamas Nagy, Director, Co-head Private Equity at the EBRD, said: "The EBRD is proud to expand its cooperation with Premier Energy by becoming a shareholder. In the run up to the IPO, we have successfully partnered with Premier Energy to further strengthen its ESG and climate practices and in setting ambitious targets. We look forward to supporting the company in becoming a key regional green energy player."
Jose Garza, Premier Energy CEO added: "We are pleased to welcome the EBRD as a shareholder in Premier Energy. This investment further strengthens our long-standing collaboration and underscores the importance of our shared commitment to renewable energy and sustainability in both Moldova and Romania. With the EBRD's investment, we are well-positioned to expand our renewable energy capacity and drive significant reductions in carbon emissions. This partnership reflects our dedication to achieving long-term growth and making a positive environmental impact."
Petr Stohr, Premier Energy CFO, said "The participation of the EBRD in our IPO was important for its success, and we thank them for their trust. Their investment and support will enable us to accelerate our renewable energy generation projects within our vertically integrated platform which includes market-leading renewable energy forecasting, balancing and dispatching capabilities alongside serving approximately 2.4 million customers, in both Moldova and Romania, significantly contributing to a sustainable energy future and reducing the carbon footprint in the region. We believe that strong partnerships are essential for business growth, and we are proud to have the EBRD on our side, helping us achieve our strategic goals."
The EBRD has to date invested almost 11 billion in 525 projects in Romania, and more than 2.3 billion in 173 projects in Moldova.
