The EBRD is considering to provide a senior loan of RON 675 million (€152 million equivalent) to CEZ Distributie S.A. (“CEZ Distributie”), an electricity distribution company incorporated in Romania and operating in the south-western region of Romania, accordint to an EBRD announcement.

CEZ Distributie is 100 per cent owned by the CEZ Group in Czech Republic. The proceeds of the loan will be used to cover CEZ Distributie’s 2015-2016 investment programme in the distribution network aiming at reducing losses, improving efficiency and installing smart meters, and the restructuring of CEZ Distributie’s balance sheet in order to optimise its capital structure with the tariff methodology in place in Romania. The investment will allow the company to reduce its technical and commercial losses while improving its SAIDI and SAIFI operational quality indicators.

With this investment the Bank supports the implementation of smart metering in Romania together with new communication equipment that will contribute to improving the operation of the network. CEZ Distributie will be one of the Romanian electricity distribution companies to roll out such smart metering program, replacing 50 per cent of the meters by 2020. In addition the investment programme will contribute to setting new standards for business conduct in Romania since it will primarily aim at reducing technical and commercial losses, leading to CO2 emission savings of up to 285,000 tons per year.

CEZ Distributie S.A., a Joint Stock Company incorporated in Romania and responsible for the distribution of electricity in Romania’s south west. CEZ Distributie is fully owned by CEZ Group, an integrated electricity utility headquartered in Czech Republic and operating in central, south-eastern Europe and Turkey.