The EBRD became a shareholder in Vestmoldtransgaz following the fulfillment of the conditions precedent related to a subscription agreement, Transgaz said in a statement filed with the Bucharest Stock Exchange.
Under the agreement, the EBRD undertook to increase the share capital of the subsidiary by EUR 20 million (USD 23.5 million) in order to finance the development costs of the gas transmission pipeline Ungheni-Chişinău.
Established in 2014, Vestmoldtransgaz owns and manages the gas pipeline network in western Moldova and provides gas transmission services in the country. Transgaz took over Vestmoldtransgaz in 2018 through its Moldovan subsidiary Eurotransgaz, for MDL 180.2 million (USD 10.2 million).
The 120 km long pipeline between Ungheni and Chişinău interconnects the gas transmission systems of Romania and Moldova.
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