Energo-Pro (Bulgaria)

In 2016, the Bank supported Bulgaria’s energy sector through an investment of EUR 40 million in the debut, seven-year, EUR 130 million privately placed bond issued by Energo-Pro Varna EAD (Energo-Pro). The company is the sole license holder for distribution and end-supply (regulated) in North-East Bulgaria and one of the three energy distribution companies in Bulgaria. Energo-Pro is also a leading free market supplier (non-regulated) for the whole territory of Bulgaria. It 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. The Group has 18 years of experience in the energy sector and develops its business in four countries: the Czech Republic, Bulgaria, Türkiye and Georgia. The net proceeds of the bond will be used by the company to finance its capital investment programme in the electricity distribution network in Bulgaria over the period of 2016-2023, as well as for repayment of its outstanding debt. The investment programme of the company includes the acquisition of existing energy infrastructure and equipment, reconstruction and new investments in development.

In addition to contributing to improved energy efficiency in the country, this operation facilitates the development and liquidity of the Bulgarian Stock Exchange – Sofia, once the bonds are listed. Acting as an anchor investor on a primary bond issue, the BSTDB provided comfort to commercial banks, pension funds, asset managers and corporate treasuries to join the subscription. The bond was placed in Central Europe, in Austria, and predominantly in South-Eastern Europe. The bond issue is the largest private one on the Bulgarian market.

Total Project Cost: EUR 207 million
BSTDB financing: EUR 40 million
Maturity: 7 years
Type of financing: Bond