Monday, May 11, 2009

Romania's Petrom borrows 400 mln eur for power plant

BUCHAREST, May 8 (Reuters) - Romania's top oil and gas group Petrom SNPP.BX said on Friday it had borrowed 400 million euros ($536 million) from international financial institutions to build a power plant.

Petrom, majority owned by Austria's OMV (OMVV.VI), got 200 million euros from the European Investment Bank and another 200 million from the European Bank for Reconstruction and Development. Both loans have a 12 year maturity.

The total value of the investment stands at 500 million euros. The power plant, which Petrom plans to build by 2012 in the southern town of Brazi, will have an 860 mega-watt capacity.

Around 20 percent of its capacity will be used solely by Petrom.

Earlier in the day, Petrom posted a 48 percent fall in its first-quarter net profit to 506 million lei ($163.5 million), mainly due to lower oil prices. ($1=3.094 Lei) ($1=.7462 Euro) (Reporting by Marius Zaharia; Editing by Jon Loades-Carter)

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