Bulgaria’s BEH Ranks First Lending Offer of Banca IMI-Bank of China-J.P. Morgan
State-owned Bulgarian Energy Holding (BEH) group has said that it will invite a consortium of Ваnса IMI, Bank of China and J.P. Morgan Securities for talks on extending bridge financing of up to EUR 650 M to its indebted subsidiary NEK.
The consortium comprising Ваnса IMI S.p.A. - London Branch, Bank of China Limited - Luxembourg Branch and J.P. Morgan Securities has been ranked first in the evaluation of the binding offers submitted by two candidates last month.
“BEH EAD reserves its right at any time to invite the consortium ranked second for negotiations for concluding a contract,” BEH said in a statement on Wednesday.
The maturity of the bridge financing is up to 12 months, with no collateral. The bridge loan will be refinanced through a subsequent placement of a bond issue.
The proceeds from the bridge loan will be used to repay the accumulated debt of the National Electricity Company (NEK) to coal-fired power plants AES Galabovo and ContourGlobal Maritsa East 3 in order for the decrease in prices under the long-term power purchase agreements to take effect and to cover debt owed by the two power plants to Maritsa East coal mines.
As of late February, NEK owed an estimated total of BGN 950 M (EUR 485 M) to the two power plants, while the palnts' outstanding debt to Maritsa East coal mines was estimated at BGN 340 M (EUR 174 M).
AES Galabovo and ContourGlobal Maritsa East 3 are owned by U.S.-based AES Corporation and ContourGlobal, respectively.
We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!
- » Bulgarian Energy Holding: BGN 50 Million Loan for Mini Maritsa Iztok
- » Bulgaria's PM Borissov Arrives in Athenes Where Will Be Signed the Contract for Gas Terminal Near Alexandroupolis
- » Half of Bulgaria's Capital Sofia Without Electricity Due to an Accident
- » General Electric Co Signed Agreement Valued at Over $1.2 Billion with the Iraqi Ministry of Electricity
- » Executive Director of the Bulgarian Energy Holding Jacklen Cohen Resigns
- » Bulgarian PM Borissov Inspected the Construction of the Interconnector with Greece