August 24, 2017 / 5:08 PM / in 3 months

Romania's Nuclearelectrica could tap markets to extend reactors' lifespan

BUCHAREST, Aug 23 (Reuters) - Romanian state nuclear power producer Nuclearelectrica could raise funds from capital markets and lenders for large investment projects including extending its reactors’ lifespan, its newly elected chief executive said.

Nuclearelectrica’s board of directors appointed Cosmin Ghita as CEO on Thursday.

Nuclearelectrica has two 706 megawatt reactors, which account for roughly a fifth of Romania’s power production, and wants to add two more.

The two were connected to the national power grid in 1996 and 2007 and need to have their lifespans extended, which is expected to cost roughly 1 billion euros ($1.18 billion).

“A capitalisation strategy is necessary because the company does not have enough fiscal space to do these works, and I will submit such a strategy for the board’s approval,” Ghita said.

Nuclearelectrica is also negotiating a partnership to build two more nuclear reactors with China General Nuclear (CGN).

Nuclearelectrica, in which Romania’s energy ministry has an 80 percent stake, has a market capitalisation of 2.19 billion lei ($564.30 million). ($1 = 0.8470 euros) ($1 = 3.8809 lei) (Reporting by Luiza; editing by Susan Thomas)

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