The loan has a reimbursement period of 25 years, with a six-years grace period, and will be a part of the EUR 181 million of projects for the cities of Baia Mare, Bistrita, Drobeta Turnu-Severin, Pitesti and Ramnicu Valcea. The other financing come from the ISPA program with EUR 131 million, the state budget with some EUR 4.1 million, local budgets and from the companies involved in the project.
EIB also announced plans to launch its first bond issue in Romanian Leu (RON) on the Romanian market. The bond will be a rarity for the domestic market in offering a benchmark-sized issue from a Triple-A rated issuer. It is also expected to offer innovation in terms of maturity. The ‘domestic' format of the bond means it would be listed in Romania and issued under local law and clearing systems, enhancing accessibility for local investors.
EIB projects in Romania reached a total volume of EUR 679 million in 2006, Romania being the second financed country after Turkey which received EUR 1.8 billion in loans.