November 15 (SeeNews) - Czech energy company Energo-Pro said on Tuesday its Bulgarian unit placed a debut, seven-year, 130 milion euro ($140 million) bond on the domestic market to finance investment in the development of its distribution network in 2016-2023.
The bond issue, lead managed by Balkan Advisory Company, has an yield of 3.50% per year, Energo-Pro said in a statement.
The bonds issued by Bulgaria's Energo-Pro Varna were placed among institutional investors from Bulgaria, Austria, Central Europe and Southeast Europe. The Black Sea Trade and Development Bank (BSTDB) invested 40 million euro in the privately placed bond issue.
"The debut bond issue is historically the largest corporate bond issue placed on the Bulgarian market," Energo-Pro Group executive director, Pavel Vana, said in the statement.
According to Vana, interest by both domestic and foreign investors in the bond issue attests to the confidence in the distribution company and growing stability of the regulatory environment in Bulgaria.
“Subsequent placement of the bonds on the Sofia Stock Exchange will boost capital market development and the investors will surely appreciate increased liquidity,” said Vana.
“We are glad that by participating in this bond issue we support the investment programme of Energo-Pro Varna," BSTDB president Ugur Delikanli said.
Energo-Pro Varna’s investment programme includes the acquisition of existing energy infrastructure and equipment, reconstruction and new investments in development.
"The company may invest part of the funds – depending on the total outcome of the issue – in energy assets in Bulgaria, Georgia, Turkey and Romania," according to the statement.
Energo-Pro Varna is engaged in power distribution in north-eastern Bulgaria, where it is the sole license holder, as well as in selling power to more than 1.2 million customers, including households and companies.
The Black Sea Trade and Development Bank (BSTDB) headquartered in Greece, is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey, and Ukraine.
($=0.9287 euro)