Fondul Proprietatea - Hidroelectrica ended the force majeure clause
According to a release of the power generator Hidroelectrica, where Fondul Proprietatea (FP) has a 20% equity interest, the company has ended its force majeure clause given better rainfall in the last period and improved estimates for precipitations going further. We remind that the force majeure clause was activated since August 2012, while previously being in place between October 2011 - April 2012. Given the severe drought this year, Hidroelectrica expects a production under 12 GWh, some 18% lower yoy and around 25% below an average hydrological year. Additionally, the trial dates with two former clients Alpiq RomIndustries si Alpiq RomEnergie, have been delayed for 6 and 20 February 2012. The two traders, whose power acquisition contracts were previously denounced, claim EUR 250 mn of foregone profits.
Leasing arm of Banca Transilvania plans to issue RON 22.5 mn 5-year bonds
The leasing arm of Banca Transilvania (TLV) intends to borrow RON 22.5 mn through the issuance of 5-year bonds. The bonds would be listed on the stock exchange and would carry a fixed interest rate, paid semi-annually. BT Leasing recorded in 2011 a net profit of RON 9 mn, up 73% yoy. The preliminary prospectus of the issuance was approved last week by the local securities commission. We remind that TLV also intends to issue EUR 30 mn bonds with a maturity of 7 years paying 6-6.25% above Euribor 6m.
