Bank Funding of € 200 Million Provided for Balkan Stream

Business | October 23, 2019, Wednesday // 16:44
Bulgaria: Bank Funding of € 200 Million Provided for Balkan Stream

Bank financing was provided for the construction of Balkan Stream in the form of a secured loan of EUR 200 million. This was reported by Bulgartransgaz. The system operator announced that it had successfully completed the loan procedure, BTA reported.

Bulgartransgaz states that the funds will be used to cover the investment costs of the company in connection with the implementation of the Balkan Stream project on the territory of the country. In particular, the secured loan will be used for advance payments to the companies involved in the realization of the project - Consortium Arcad Association, as well as DZZD Ferrostaal Balkangaz.

The announcement states that the successful procedure secured Bulgartransgaz loans from banking institutions totaling EUR 200 million, secured by US dollar deposits for six months, with an extend option for another six months.

The company informs that it has already signed contracts with some of the largest international financial institutions.

Bulgartransgaz EAD announced that the advance payment to Consortium Arcad, which is already constructing the linear part, is BGN 250 million and 50 million VAT. and BGN 140 million and VAT 28 million respectively for DZZD Ferrostaal Balkangaz which will build the two compressor stations - Rasovo and Nova Provadia - BGN 140 million and VAT 28 million..

The deadline for payment of the remaining amount for the gas pipeline is 120 months after commissioning and for compressor stations - 2 years, the message states.

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Tags: Balkan Stream, funding, Bulgartransgaz, DZZD Ferrostaal Balkangaz
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