Financed ProjectsEnergo Pro a.s II Bond

Identification Code:

OP/21/0046

Total Operation Cost:

435.000.000

Maturity:

60 months

Operation Status:

Description and Purpose of the Operation:

BSTDB invested USD 45 million as an anchor investor in the 5-years senior unsecured guaranteed bond issuance (Bond) of Energo-Pro a.s., (Issuer), a leading independent hydropower plant operator and power distributor in the Black Sea Region. The total size of the bond issuance is USD 435 million. BSTDB will also contribute to improving ENERGO-PRO’s environmental and social performance by strengthening its environmental and social management system and expanding it to more sites in Bulgaria, Turkey and Georgia, by developing comprehensive Stockholder Engagement Plans, and by increasing adaptability of its power generation to the impacts of the changing climate.

Countries of Operation:

Bulgaria (93,33 %)
Georgia (6,67 %)

Financial Product:

Loans

Sector:

Utilities

Domain:

Private

Borrower/Client:

The Issuer is Energo-Pro a.s., the Czech Republic

Co-Financiers/Participants:

Institutional investors across Europe and from US.

Guarantors/Sponsors:

ENERGO-PRO VARNA EAD, Bulgaria ENERGO-PRO Georgia Holding JSC, Georgia JSC Energo-Pro Georgia, Georgia EP Georgia Generation JSC, Georgia EP Georgia Supply JSC, Georgia Energo Pro Turkey Holding A.Ş., Turkey and Reşadiye Hamzalı Elektrik Üretim San.ve Tic. A.Ş., Turkey

Developmental and Regional Cooperation Impact:

BSTDB participation in the Operation would: • Generate additional export and tax revenues; • Contribute to the activities of successful companies/Group in Bulgaria and Georgia while overall bond proceeds will also contribute to their activities in Turkey – 3 BSTDB member countries; • Bring-in development impact and promote cooperation among member states via investments and exports; • assist in the promotion of intra-regional trade, especially of capital goods, among the Member States; • finance productive projects and enterprises in the Member States; and • promote investment in economic and social infrastructure projects in the Member States, by way of guarantees, participations and other financial arrangements in both the public and the private sectors.

Environmental Classification and Impact (summary):

The operation has been assigned E&S Category B. The E&S due diligence of Energo-Pro A.S. carried out at the corporate level concludes that the E&S risks and impacts associated with the operation are not significant. The subsidiaries proved to be compliant with the applicable E&S laws and regulations, and the risk of material non-compliance was assessed as low. The subsidiaries show different level of commitment and approach towards managing the E&S issues, the most developed in this respect being by far Energo-Pro Bulgaria. The Georgian and Turkish subsidiaries are guided mainly by the national legislation requirements. Almost all of the Group’s generated electricity is already carbon-free and the carbon footprint of the distribution and supply business is modest. The applied labour and working conditions meet the national labour codes, with adequate HR policies and terms and conditions of employment. In terms of pollution prevention and abatement ENERGO-PRO meets the limits of emissions, discharges, and waste generation, including of hazardous wastes. To further improve the E&S performance of the Group an E&S Action Plan will be drafted and implemented.

Operation Leader:

Energy & Infrastructure, General Industries, Transport, Tourism 2

E-mail:

ei@bstdb.org,gitt2@bstdb.org