Eight Banks Place Binding Offers to Lend up to EUR 650 M to Bulgaria’s BEH
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.
We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!
- » CPC Sealed Office of the Bulgarian Oil and Gas Association
- » Bulgarian Ministry of Finance Proposes to Establish State Oil Company
- » 2000 km Away from the Green Deal: How the History of One Power Plant Turned into Destiny for Several Generations of Bulgarians
- » ContourGlobal Maritsa East 3 TPP Operating Steadily under the Hardest Measures against COVID-19
- » The Impact of Covid-29 on Energy Markets
- » NSI: Increase in the Production of Unleaded Motor Gasoline - by 1.4% and Natural Gas