Headquartered in Bucharest, Electrica serves about 3.5 million customers in north-western, central, southern and south-eastern Romania.

The bank’s move will help finance Electrica’s investment strategy to upgrade its infrastructure.

The company’s network will become more flexible with the help of EBRD’s funds as Romania recently had an increase in its variable renewable energy capacity.

EBRD said the investment allows it to support a plan to enhance corporate governance, internal control systems and environmental management practices.

Electrica and the EBRD have also signed a framework agreement to implement a corporate governance action plan and an environmental and social action plan.

EBRD power and energy director Nandita Parshad said the bank’s participation in the IPO demonstrates its commitment to support the government’s plans for increased privatisation of the energy sector.

"We will work with the company towards the successful implementation of an ambitious set of measures to align its corporate governance with international standards. This will provide additional comfort and confidence to potential future investors," Parshad added.