Eight banks grouped in two consortia have submitted binding offers to extend bridge financing of up to EUR 650 M in total to the state-owned Bulgarian Energy Holding (BEH) group.

The energy group is seeking the money to enable its indebted subsidiary National Electricity Company (NEK) to repay debt owed to the local units of U.S.-based AES Corporation and ContourGlobal.

“All of the participants meet the criterion for extending a bridge loan facility, which at a later stage will be refinanced through a bond issue,” BEH said in a statement on Friday, as the deadline expired for submitting offers.

The total financing on offer covers the amount sought by BEH (up to EUR 650 M), the energy group added.

Eleven financial institutions, including the eight which submitted binding offers, had taken part in direct negotiations for the selection of an investment consultant to advise the issuing of corporate bonds, BEH said.

“A commission within BEH is assessing the submitted offers. The selected candidate would be invited for talks on concluding a bridge loan facility agreement,” BEH said.

BEH will use the proceeds of the loan to repay an estimated BGN 950 M (EUR 485) owed by NEK to coal-fired power plants AES Galabovo and ContourGlobal Maritsa East 3 as well as an estimated BGN 340 M (EUR 174) owed by the plants to Maritsa East coal mines.