Privately issued bonds of ENERGO-PRO Varna will be traded on the Bulgarian Stock Exchange

In 2016, the company issued a seven-year bond issue worth 130 million euros

Bulgaria's largest private bond issue already has a listing date on the Bulgarian Stock Exchange (BSE) - May 5, 2017. Days earlier, the bond's prospectus was approved by the Financial Supervision Commission (FSC) and the BSE. The seven-year issue issued by ENERGO-PRO Varna EAD in November 2016 is worth 130 million euros and has an annual interest rate of 3.50 points.

“The record bond issue for the Bulgarian market is indicative of the potential of ENERGO-PRO to make large-scale investments in the Bulgarian energy sector,” said Momchil Andreev, CEO of ENERGO-PRO Varna.

Part of the funds raised from the issuance of the bonds were used to repay residual debt on bridge financing provided by DSK Bank to the energy company in June 2016. Another main part will be used to finance the capital investment program in the distribution network in the period 2016-2023, including the purchase of energy infrastructure and equipment, reconstruction and new investments on the territory of the Republic of Bulgaria. Funds not spent for these purposes could be invested in other energy assets in Bulgaria, Georgia, Turkey and Romania according to the prospectus of the issue.

The investors in the bonds of ENERGO-PRO Varna EAD are international and local financial institutions, commercial banks, pension funds and asset managers. The issue is secured by a special bet on non-cash shares from the capital of the company's subsidiaries. 50% of the issue was placed by the leading manager Balkan Consulting Company IP EAD in Central and Eastern European countries, and the remaining 50% - in Bulgaria.

The listing agent and lead manager of the issue is Balkan Consulting Company IP EAD, and the issuer's legal advisers on the listing are Tsvetkova, Bebov and Komarevski.

According to Alex Bebov, Executive Director of Balkan Consulting Company, the issue of ENERGO-PRO Varna bonds is an important step in the development of the Bulgarian Stock Exchange and the Bulgarian capital markets. It represents one of the largest domestic debt issues on the capital markets in Central and Eastern Europe in the last few years. This is also indicated by the fact that the bond was covered in leading financial media when it was issued in November 2016.

ENERGO-PRO Varna EAD is a leading Bulgarian energy company, whose composition includes the power distribution company ENERGO-PRO Grids, which serves North-East Bulgaria, the final supplier ENERGO-PRO Sales and one of the largest traders of electricity on the free market in Bulgaria ENERGO-PRO Energy Services.

ENERGO-PRO Varna is a subsidiary of Czech Energo-Pro a.s., one of the most dynamically developing energy groups in the European Union with investments in several European countries and countries of the Black Sea region. Energo-Pro a.s. is active internationally in the sectors of electricity distribution, production of electricity from hydropower, electricity trade and production of machinery and equipment for the hydropower sector.