Financed ProjectsBulgarian Energy Holding Bond

Identification Code:

OP/21/0020

Total Operation Cost:

600.000.000

Maturity:

84 months

Operation Status:

Description and Purpose of the Operation:

EUR 35 million participation in the 7-years senior unsecure bond issuance (Bond) of the Bulgarian Energy Holding EAD (BEH, Issuer) of 22 July 2021. The net proceeds of the Bond will be applied by the Issuer for its general corporate needs (excluding coal-related activities) and the repayment of its outstanding indebtedness. BSTDB invested in the Bond in its capacity as anchor investor with the objective to enable BEH to improve its financial resilience and stability and therefore the long-term financial viability and sustainability of the Bulgarian energy sector. The Issuer has procured that all amounts raised through the BSTDB financing shall be applied for the purpose of implementing its certain investment projects in connection to the operations of the Issuer in Bulgaria. BSTDB is an on-going investor through a EUR 50 million participation by tapping the bonds issued by BEH in 2018. Following the recent EUR 35 million participation, the Bank’s cumulative investment in BEH shall increase to EUR 85 million. The investment is consistent with the Bank's policies and strategies and more specifically with the priorities under the country strategy for Bulgaria 2019-2022 as well as the Medium-Term Strategy and Business Plan 2019-2022.

Countries of Operation:

Bulgaria (100,00 %)

Financial Product:

Loans

Sector:

Utilities

Domain:

Private

Borrower/Client:

Bulgarian Energy Holding EAD is the holding company for a group of subsidiaries and affiliates which are principally engaged in electricity generation, supply and transmission, natural gas transmission, supply and storage and coal mining in Bulgaria and which hold a leading position in the electricity and gas market in Bulgaria and, through electricity exports, in the selected markets in the Balkans.

Co-Financiers/Participants:

N/A

Guarantors/Sponsors:

N/A

Developmental and Regional Cooperation Impact:

The proposed financing contributes to the development of the energy sector in Bulgaria given the BEH status as the incumbent 100% stated- owned electricity and gas utility in the country and Issuer’s significant contribution to energy security, GDP and economic growth of Bulgaria.

Environmental Classification and Impact (summary):

Category B+ with medium-to-high E&S risks and impacts. The Prospectus prepared for the bond issue of BEH considers in detail the associate E&S risks and impacts the Group is exposed to and which, could materially affect its business. Among the key issues are the constantly tightening EU and Bulgarian Legislation, and the occurrence of unforeseen events caused by man, equipment failure, or nature. The ESDD concludes that BEH has instituted the key controls throughout its business entities and processes, and is adequately managing the critical E&S issues associated with its activities.

Operation Leader:

Energy & Infrastructure

E-mail:

ei@bstdb.org