ENERGO-PRO Varna placed an issue of seven-year bonds with yield of 3.50 % p.a. on the Bulgarian market in the total volume of EUR 130 million. This issue of securities by one of the three Bulgarian power distribution network operators aims at boosting investments in the Bulgarian energy industry, as well as development of the Bulgarian capital market.
Balkan Advisory Company IP AD was the lead manager of the issue. The bonds were placed among institutional investors from Bulgaria, Austria, Central Europe and Southeast Europe. The Black Sea Trade and Development Bank (BSTDB) also invested EUR 40 million in the bonds issued by Energo-Pro Varna; BSTDB thus acts, for the first time, as an “anchor investor” in the early stage of a similar issue. ENERGO-PRO Varna is a subsidiary of ENERGO-PRO Group, a multinational group with its registered office in Prague, which is a leading hydro-electric power plant operator and hydro-electric power plant equipment manufacturer.
Capital Market Development
“The debut bond issue is an important step for use. It is historically the largest corporate bond issue placed on the Bulgarian market,” said Pavel Váňa, Executive Director of ENERGO-PRO Group. According to Váňa, 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 Pavel Váňa.
Energy Efficiency Boost
Ugur Delikanli, President of BSTDB, pointed out that the bond issue will contribute to improving the energy efficiency in Bulgaria. “We are glad that by participating in this bond issue we support the investment programme of ENERGO-PRO Varna being the leading player on the Bulgarian energy market and an important investor in other countries of the Black Sea region,” said Ugur Delikanli. BSTDB is an international financial institution which supports economic development and regional cooperation. BSTDB has its headquarters in Thessaloniki, Greece.
ENERGO-PRO Varna will use the funds gained by the bond issue to finance capital investment programme in the area of distribution network development in 2016-2023. This investment programme includes acquisition, reconstruction and new investments in the development of the existing energy infrastructure. 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.
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.
