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Eurohold Bulgaria's energy arm refinances 500 mln euro debt

Jun 19, 2024, 12:20:33 PMArticle by Mihaela Miteva
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June 19 (SeeNews) - Energy and insurance group Eurohold Bulgaria [BUL:EUBG] said it has refinanced 500 million euro ($535.8 million) of debt raised for the acquisition of Czech energy group CEZ's Bulgarian operations in 2021, as well as their subsequent development and investments in energy business.

Eurohold Bulgaria's energy arm refinances 500 mln euro debt
Eurohold/All rights reserved.

Eurohold's subsidiaries Eastern European Electric Company B.V. (EEEC) and Eastern European Electric Company II B.V. (EEEC II), through which it owns electricity supplier and distributor Electrohold Group, have completed a financing transaction comprising a new five-year 460 million euro syndicated secured loan and an additional 5.25-year 65 million euro loan, Eurohold said in a stock exchange filing on Tuesday.

The new loan financing will have better terms until its maturity in 2029, including savings on interest expenses. It will refinance an existing 360 million euro syndicated loan for EEEC B.V. and a 125 million euro loan for EEEC II B.V.

Additionally, the financing includes a 15 million euro capital expenditure loan from the European Bank for Reconstruction and Development (EBRD) for the group’s power distribution subsidiary Electrodustribution Grid West. This loan is aimed at upgrading and developing the power distribution network to accelerate the company's investment programme ahead of the upcoming liberalisation of the electricity market.

"By securing the new syndicated loan facility, Eurohold has ensured stable long-term financing resources and the required financial means to realise its development strategy and programme for its energy business. We will continue to invest actively in our energy business and to integrate state-of-the-art technologies, modernising the power distribution network, and ensuring secure, quality and reliable services while adhering to sustainable aspects of operations," Eurohold head of mergers and acquisitions Vasil Stefanov said.

Germany's J.P. Morgan SE, which structured the acquisition financing for the CEZ Group in 2021, acted as the initial mandated lead arranger and book runner for the new debt financing. The bank syndicate includes the EBRD, Eurobank Private Bank Luxembourg, Bank of China Luxembourg, Eurobank Bulgaria, Unicredit Bulbank, Raiffeisenbank International, United Bulgarian Bank and DSK Bank. Eurohold's investment arm, Euro-Finance, also took part in structuring the financial transaction.

Shares in Eurohold last traded on June 14 when they closed at 1.55 levs ($0.85/0.79 euro) on the Bulgarian Stock Exchange, bourse data show.

($ = 0.9333 euro)

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