BSTDB Buys Bulgarian Energo-Pro Varna Bond to Help Energy Infrastructure Development in the Country15-Nov-2016
The Black Sea Trade and Development Bank (BSTDB) has invested EUR 40 million in the debut, seven-year, EUR 130 million, privately placed bond issued by Energo-Pro Varna EAD, to support investment in Bulgaria’s energy sector. This subscription marks the first time BSTDB acted as an anchor investor on a primary bond issue. The net proceeds of the bond will be used by the Issuer for financing the capital investment programme in the electricity distribution network in Bulgaria over the period of 2016-2023, as well as for repayment of its outstanding indebtedness. The Company’s investment programme includes the acquisition of existing energy infrastructure and equipment, reconstruction and new investments in development. Bond’s surplus proceeds may be invested in energy assets in Bulgaria, Georgia, Turkey and Romania. Balkan Advisory Company IP EAD was the sole lead manager on the issue.
“Through participation in this bond issue, we are happy to support the investment programme of Energo-Pro Varna, a leading player in the Bulgarian energy market and an important investor in other countries of the Black Sea region. We believe this operation will not only facilitate the development and liquidity of the Bulgarian Stock Exchange – Sofia, once the bonds will be listed, but will more importantly contribute to the improved energy efficiency in the country” - said BSTDB President Ihsan Ugur Delikanli.
„Energo-Pro Varna is particularly pleased to have BSTDB as an anchor investor alongside other international and local commercial banks, pension funds, asset managers and corporate treasuries. The terms and size of the issue, which is by far the largest for the Bulgarian market, provide solid footing for our medium term investment plans.“, said the Chief Executive Officer of ENERGO-PRO Varna EAD Momchil Andreev.
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Energo-Pro Varna EAD is a subsidiary of Energo-Pro A.S., Czech Republic, a highly reputable integrated energy company with long history in private electricity distribution, power supply and generation of electricity from renewable energy sources. Energo-Pro Varna, one of the three energy distribution companies in Bulgaria, is engaged in distribution, end-supply and free market electricity trading. It is the sole license holder for distribution and end-supply (regulated) in North-East Bulgaria and a leading free market supplier (non-regulated) in Bulgaria. More information is available at www.energo-pro.bg.
The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey, and Ukraine. The BSTDB headquarters are in Thessaloniki, Greece. BSTDB supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects and trade financing in the public and private sectors in its member countries. The authorized capital of the Bank is EUR 3.45 billion. BSTDB is rated long-term “A-” by Standard and Poor’s and “A2” by Moody’s. For information on BSTDB, visit www.bstdb.org.
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