Bulgartransgaz EAD ensured bank finance of EUR 200 million for Balkan Stream
Bulgartransgaz EAD completed successfully a bank finance in the form of collateralised credit procedure. The funds will be used to cover the investment costs linked with the realisation of the Balkan Stream project on the territory of the country. The credit will more particularly be used for advance payments to the companies involved in the project - Association Consortium Arkad and DZZD Ferrostaal Balkangaz.
The successful procedure ensured credits to Bulgartransgaz EAD from banks totalling to EUR 200 million, collaterised with cash deposits in US dollars for 6 months, with a possibility for another 6. Nine offers were received within the procedure. Contracts have already been signed with some of the biggest international financial institutions, including Citibank Europe, ING Bank, UniCredit Bulbank AD and the International bank for economic co-operation. The advance payment to Consortium Arkad that already builds the gas pipeline network totals to BGN 250 million and 50 million VAT, and to Ferrostaal Balkangaz that will construct the two compressor stations – Rasovo and Nova Provadia – BGN 140 million and 28 million VAT. The repayment term for the remaining sum for the gas pipeline is 120 months as of its commissioning, and for the compressor stations - 2 years.
The ensured finance allows Bulgartransgaz EAD to comply with the obligations in line with the contracts signed with contractors under the project and will at the same time realise a significant positive effect in the size of more than BGN 2 million. This is possible thanks to the fact that US dollars interest levels on global markets, which is the currency of the collateral, are significantly higher compared to the euro rates.