The European Bank for Reconstruction and Development (EBRD) has announced an equity investment of RON 77.1 million (EUR 15.5 million) in the initial public offering (IPO) of Premier Energy PLC, a leading private integrated energy company operating in Romania and Moldova. The investment, which represents 10.99% of the newly issued shares and a 3.2% total ownership stake in Premier Energy, underscores the EBRD’s commitment to fostering renewable energy development in the region.
The IPO, which saw Premier Energy’s shares listed on the Bucharest Stock Exchange (BSE) on May 28, 2024, aims to raise funds exclusively for expanding the company’s renewable energy generation capacity. This expansion will be achieved both organically and through the acquisition of renewable projects and operating plants, primarily located in Romania and Moldova.
The primary objective of the EBRD’s investment is to support Premier Energy in its renewable energy expansion, thereby contributing to local capital market development in Romania. By channeling the IPO proceeds towards renewable energy projects, the initiative aligns with the EBRD’s strategic goals of promoting green energy and fostering market resilience.
The project has an Environmental Transition Impact (ETI) score of 70, reflecting its significant green and resilient qualities. The EBRD’s participation in the IPO is expected to substantially enhance the development of new renewable energy capacity, contributing to the green transition. Additionally, the project will play a crucial role in strengthening local equity capital markets, a key objective for the EBRD in Romania.
Premier Energy PLC, a rapidly growing vertically integrated energy infrastructure company, operates primarily in Romania and Moldova. Its core business lines include renewable electricity generation and supply, electricity distribution in Moldova, and gas distribution and supply in Romania. With a renewable energy generation capacity of over 900 MW in Romania and more than 50 MW in Moldova, Premier Energy plans to increase its installed capacity to between 1.4 GW and 1.6 GW in the coming years. The company recently expanded its client base by acquiring CEZ Vanzare, a significant player in the electricity and gas supply sector in Romania.
The project is categorized as B under the 2019 Environmental and Social Policy (ESP) due to its capital markets nature. Environmental and Social Due Diligence (ESDD) was conducted based on publicly available information, including the draft IPO prospectus and the company’s annual reports. The due diligence confirmed that Premier Energy has adequate environmental and social risk management capacities and is committed to compliance with the Environmental and Social Action Plan (ESAP).
Premier Energy’s HR policies include an employee grievance mechanism and occupational health and safety policies in line with EBRD standards. The company is also developing an energy management system and has implemented a robust stakeholder engagement plan. Premier Energy is committed to reducing its net carbon dioxide emissions to zero by 2045, in line with international sustainability goals.
Starting in 2024, Romania will tender new renewable energy projects annually, aiming for a total capacity of 20 GW per year. This initiative seeks to achieve a cumulative capacity of between 100 to 130 GW by 2030, depending on electricity demand growth. The EBRD’s investment in Premier Energy’s IPO marks a significant step towards this goal, promoting the development of renewable energy and enhancing market resilience in the region.
Discover more from SolarQuarter
Subscribe to get the latest posts sent to your email.
