ENERGO-PRO issued privately issued bonds worth 130 million euros

Proceeds will be invested in a capital investment program and in improving the quality of services

ENERGO-PRO Varna EAD has put into circulation a seven-year private bond issue worth 130 million euros. The issue is the largest issued in Bulgaria and is among the largest bond loans in Central and Eastern Europe.

The investors in ENERGO-PRO bonds are international financial institutions, commercial banks, pension funds and asset managers. It is expected that part of the issued bonds will be traded on the Bulgarian Stock Exchange.

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

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.

“We are extremely pleased with the fact that ENERGO-PRO Varna has attracted as investors in the largest bond issue in the history of the Bulgarian market leading international and Bulgarian banks, pension funds and asset management companies. This issue is a solid financial basis for subsequent investments. It is indicative of both the trust enjoyed by ENERGO-PRO in Bulgaria and abroad, as well as the capacity of the Bulgarian financial sector to mobilize resources for lending to large-scale projects,” said the Chief Executive Officer of ENERGO-PRO Varna Momchil Andreev.

The proceeds from the bond loan will be used to finance capital investments of the companies of the ENERGO-PRO Varna group, including within the framework of the program for the development of the electricity distribution network in North-East Bulgaria in the period 2016-2023, as well as to optimize financial flows and financial costs. The investment program of ENERGO-PRO Varna is aimed at developing and improving the quality of energy and services for customers and includes the acquisition of assets, construction of new facilities, replacement and rehabilitation of the existing electricity distribution infrastructure, reconstruction projects and development of the electricity distribution network. Residual proceeds from the issue can be invested in energy assets in Bulgaria, Georgia, Turkey and Romania.

The manager of the bond issue is Balkan Consulting Company IP EAD.