At the beginning of June this year, Bulgartransgaz EAD announced a procedure for raising credit resources in the amount of EUR 400 million. The objective of the procedure was to ensure financial resources for realisation of the corporate investment programme aimed at diversification of sources, increasing the security of gas supply and positioning the country as a gas distribution centre in the region. The published invitation aroused the interest of about 20 financial institutions and 17 submitted the necessary documents guaranteeing non-disclosure of sensitive information for Bulgartransgaz EAD. By the deadline for offers’ submission - June 30, 2020, 10 offers for provision of credit resources were received from a total of 13 financing institutions - banks and international financial institutions. The procedure provided for the possibility, in case the company received sufficient economically advantageous offers, to increase the amount of credit financing.
The total amount of the offers received is EUR 542 million. Interest rates vary for each of the 6 years of the credit, with the lowest offered interest rate being 1.35% and the highest - 3.50%.
As a result of the conducted procedure, the offers of globally recognised banks and of international financial institutions, operating on the basis of intergovernmental agreements, were received and evaluated: ING Bank N.V., Citibank Europe AD, Raiffeisenbank Bulgaria EAD, Unicredit Bulbank AD, United Bulgarian Bank AD, International bank for economic co-operation, Eurobank Bulgaria AD, DSK Bank AD, VTB Bank Europe SE, Bulgarian Development Bank Association - International Investment Bank - Municipal Bank.
The results of the procedure have been approved by Bulgartransgaz EAD management and a process will be launched on specifying the terms and conditions of the particular contracts with the financing institutions.
Due to the great interest of the financing institutions in the procedure announced by Bulgartransgaz EAD and due to the fact that the interest rates offered by the financing institutions are more economically advantageous than those set in the contracts concluded with Association Consortium Arkad and DZZD Ferrostaal Balkangaz - the selected contractors for implementation of the Balkan Stream project, Bulgartransgaz EAD has the opportunity to realize interest savings in the amount of EUR 65 million.
The participation of established global and Bulgarian financial institutions in the procedure for credit resources raising, as well as the significant funding proposed by them, is an acknowledgement of the importance of the projects that Bulgartransgaz EAD implements and their key role in diversifying energy supplies.