After nearly five months of negotiations, the state-run Bulgarian Energy Holding (BEH) managed to obtain a EUR 650 million loan to cover some of its debts to energy companies. The bridge financing will be used to cover the running debt of BEH subsidiary – the National Electricity Company (NEK), to AES Maritsa East 1 TPP and ContourGlobal Maritsa East 3 TPP.
The bridge financing will be provided by a J.P. Morgan Securities-led consortium of Ваnса IMI S.p.A. – London Branch and Bank of China Limited – Luxembourg Branch, for a period of 12 months without the need for a guarantee on the loan which will be refinanced with an obligations emission.
Shortly after the loan was approved TPP AES Galabovo announced that it has decreased its tariff, as agreed upon in the amendment to TPP AES Galabovo’s Power Purchase Agreement (PPA) with the state-run National Electricity Company (NEK) signed in 2015. The new capacity price reduction of 14% became effective on April 27, 2016, leading to BGN 50 m (about EUR 25 m) annual savings, or more than BGN 500 m for NEK for the remaining term of the PPA, which expires in 2026.
TPP AES Galabovo paid BGN 99 m to Maritza East Mines, the plant’s coal supplier. The 690-megawatt plant is using only local fuel and is among the biggest consumers of lignite produced by Maritsa East Mines. The payment of the amount, accumulated as a result of the delayed payments to TPP AES Galabovo, will secure the investment program of the mines and will guarantee the employment of thousands of Bulgarian miners.
Source: Publics.bg