BSTDB Invests EUR 50 million in Modernization of Bulgarian Energy Holding
Press Release | 17-Oct-2018
The BSTDB has invested EUR 50 million in a bond issue of the Bulgarian Energy Holding EAD (BEH), a state-owned electricity and gas markets leader in Bulgaria and a major electricity exporter in the Balkans.
The BSTDB funding will help implement BEH’s priority investment projects in Bulgaria, such as the modernization of the electricity and gas transmission infrastructure, in particular the interconnectors between Bulgaria and its neighboring countries, which is crucial for energy security and integration in the region.
Dmitry Pankin, BSTDB President said: “We are happy to support the strategic investment program of the Bulgarian Energy Holding, which will contribute to financial viability and sustainability of the country’s energy sector. As a regional development bank, BSTDB contributes to the energy sector development in line with Government’s economic policy priorities.”
Petyo Ivanov, CEO of BEH said: “We consider the participation of BSTDB in the bond issue as a strategic step towards strengthening the cooperation between the two institutions in the long run. Furthermore, having an institutional investor as BSTDB on board is a clear sign that the energy projects and the sector in Bulgaria are developing in the right direction.”
The total volume of the BEH bond was EUR 600 million issued in three tranches, with BSTDB subscribing to the last tranche of EUR 50 million alongside other selected institutional investors.
Since the beginning of its operations in Bulgaria, BSTDB has approved over EUR 490 million in 38 projects in the country. In the past two years, the Bank considerably increased its activities in Bulgaria, having invested over EUR 140 million in five operations. More information on BSTDB operations is available at www.bstdb.org/countries/bulgaria
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The Bulgarian Energy Holding EAD (BEH) is the leading state energy company supplying electricity and gas in Bulgaria. BEH is the largest state-owned company in Bulgaria in terms of the assets size. It controls a substantial part of the country’s energy infrastructure and has a dominant position in the Bulgarian electricity and gas markets through its power generation assets, the largest mining company, electricity and gas transmission and transit networks.
The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Türkiye, 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.
Press contact:
Haroula Christodoulou
Phone: +30 2310 290533
E-mail: cchristodoulou@bstdb.org