Bulgarian wholesale electricity supplier NEK has repaid EUR 309 M in outstanding debt owed to coal-fired AES 3C Maritza East I power plant, a subsidiary of U.S.-based AES Corporation.

The power plant, located near Galabovo, in southern Bulgaria, will use the majority of the proceeds to repay debt to Maritza East lignite mine that supplies it, “as well as repay the lenders of the plant’s non-recourse debt,” AES Corporation said in a statement on Wednesday.

The repayment of outstanding debt owed to the power plant by NEK became possible after the state-owned Bulgarian Energy Holding (BEH) group agreed a bridge loan of EUR 535 M with a consortium of three banks.

“As a direct result of the steps taken by the Government of Bulgaria to strengthen the financial position of NEK, Maritza has received full payment of its outstanding receivables,” said , AES President and CEO, Andres Gluski, said in the statement.

“By meeting all of its contractual obligations, Bulgaria is sending a very positive sign to all foreign investors in the country.”