TUD Group assisted Bacau Municipality with getting two financings amounting to over EUR 36 million
Bucharest, 09 October 2023 – TUD Group – one of the largest groups of local independent companies in Romania, providing financial advisory, IT solutions and specialized technical advisory services – assisted Bacau Municipality with getting two financings amounting to over EUR 36 million, to be used both for public investment projects of local interest, as well as for supplementing the funding required for projects which benefit from European Union grants. The loan facilities have been granted for a timeframe of twenty-five years, by the Council of Europe Development Bank, and, for the first time ever, for a timeframe of twenty years by Libra Internet Bank.
“We thank Bacau Municipality for their trust. Throughout the 8 months, the multidisciplinary TUD Group team has worked closely with the municipality’s representatives, and it was involved in all the stages required for getting the funding – from documentation, financial and technical structuring, to analysis and negotiation of the loan terms, in order to define the optimal financial solution. Furthermore, TUD Group has also assisted Bacau Municipality with having the financial instruments authorized by the Local Loans Authorization Commission. We take pride in the fact that we were able to use our expertise for accessing this hybrid funding structure, of material value, which targets investments in public interest objectives (including E.U. co-financing), of which many residents of Bacau Municipality, as well as those living nearby the city of Bacau, will rejoice. In addition to that, we are honored to mark a premiere on the Romanian market, alongside Libra Internet Bank – that of getting financing for a local public authority for a timeframe of 20 years. The funding structure consists of a loan o amounting to over EUR 9.6 million (in RON equivalent), granted by Libra Internet Bank (in revolving system, up to an amount of over EUR 14 million, in RON equivalent) and a loan amounting to EUR 26.7 million granted by the Council of Europe Development Bank – which proves not only our determination, but also the professionalism we show in each project”, Mihai Tudorancea, Managing Director of TUD Group, stated.
The total investment value for the local, public interest objectives amounts to over EUR 77 million. In addition to the granted loan, more than EUR 35 million are provided by Bacau Municipality from the local budgets, non-reimbursable sources and other legally-established sources.
The investment projects benefiting from European Union grants are:
- Implementation of a traffic management system for prioritization of local public transportation lanes and of bike rides;
- Development of an active (non-motor) transportation lane for the route: Cancicov Park – Stadium – Swimming Pool – “Vasile Alecsandri” University (Path for Youth and Sports);
- Development of an active transportation lane: Center – Serbanesti;
- Modernization, fitting and expansion of the buildings of the Outpatient Care Ward of the Bacău Pneumo-Phthisiology Hospital and
- Creation of business incubator supporting infrastructure “Hub pentru tineret”/ “Youth Hub” – Orizont Cinema;
The investment projects of local interest (non-EU) are:
- Integrated renovation of “Vasile Alecsandri” National College, Bacau;
- Closing Cell 1 within the compliant Bacău Waste Deposit;
- Supplying with natural gas from the Transgaz main pipeline the energy production sources on the platform located at 6 Chimiei Street, in Bacău;
- Planning and fitting the spaces in the yard of “Ferdinand I” National College;
- Planning and fitting the spaces in the yard of “Vasile Alecsandri” National College;
- Planning and fitting the spaces in the yard of “Gheorghe Vranceanu” National College.
The TUD Group team which contributed to securing the funding consists of: Anca Cunțan – Senior Financial Analyst, Andreea Popovici – Financial Advisor, Cristina Ţubucanu – Senior Financial Advisor, Ioana Alexa – Senior Financial Advisor and Raluca Teodosiu – Senior Technical Advisor.
About TUD Group
TUD Group is one of the largest groups of local independent companies in Romania, which provides a complete and complex range of financial advisory, IT solutions and specialized technical advisory services.
In its 16 years of existence, TUD Group has worked together with both local public authorities and private companies which set out to develop ambitious projects, thus enabling positive changes. TUD Group’s portfolio includes partnerships developed with over 15 banking institutions (both local and international) and over 20 local public authorities or private entities. Throughout the years, the group has drawn financing amounting to lei 5.5 billion from the local market and has contributed to the implementation of projects worth over EUR 1.3 billion, with financing from the international financial institutions such as the European Investment Bank, the European Bank for Reconstruction and Development, the Council of Europe Development Bank.