Utility company Electrica, where the Romanian state is the largest shareholder (49.8%), announced in a note to investors that its subsidiary Distributie Energie Electrica Romania (DEER) was given a EUR 200mn non-reimbursable (grant) financing through the Modernisation Fund, representing 80% of the eligible expenses (EUR 250mn), for five more new investment projects in the electricity distribution network.<\/p>\n
Electrica\u2019s market capitalization is RON 5.4bn (EUR 1.1bn) after its shares rose by 73% y\/y. The yield generated by the dividends disbursed out of the 2023 profit was only 0.74%.<\/p>\n
Three of the projects, totaling about EUR 162mn, of which approximately EUR 131mn are non-reimbursable funds, are for automation of the medium voltage network in the three DEER areas.<\/p>\n
These new projects add to the other 13 investment projects for which DEER had already attracted about EUR 250mn through the Modernisation Fund.<\/p>\n
Thus, DEER has so far attracted about EUR 450mn from the Modernisation Fund, approximately 38% of the total financing disbursed in Romania under the Modernisation Fund, and has 12 more submitted projects.<\/p>\n