Bulgaria's Electricity and Energy Savings Fund Seeks 372,700 Euro in Capital Hike

The company plans to raise its capital to 1,458,405 levs through the issue of 486,135 shares with a par value of 1.0 lev at an issue price of 1.5 levs each, EESF said in a filing to the Bulgarian Stock Exchange (BSE).

The capital hike is envisaged in the 7.0 million euro loan agreement with the European Bank for Reconstruction and Development signed in December 2007, a fund official told SeeNews. The loan will be used for securitisation of energy projects and for utility services.

EESF is a special purpose vehicle, majority-owned by energy and construction company Enemona.

The fund’s main line of business is the sale of so-called ESCO contracts, through which it offers to reduce a client's utility costs, often with the cost savings being shared with the client through an energy performance contract or a shared-savings agreement.

Shares of EESF gained 8.1% to 2.0 levs on the Sofia bourse on Tuesday. The statement was released after the market close.

(1 euro = 1.9562 Bulgarian levs)