Bulgarian Energy Holding EAD successfully placed its fourth Eurobond issue in the amount of EUR 600 million
The proceeds raised from the issuance will be used to refinance the EUR 550 million 4.875 per cent bond issued in 2016 which matures in August 2021, as well as for general corporate purposes, excluding coal-related activities
On July 15 2021 Bulgarian Energy Holding EAD (BEH) successfully placed its fourth Eurobond issue in the amount of EUR 600 million to be listed on the Irish Stock Exchange (trading as Euronext Dublin).
On July 13th 2021 representatives of Bulgarian Energy Holding EAD and the Ministry of Energy of Republic of Bulgaria held a Global investor call and in the period 13th - 14th July 2021 a NetRoadShow has been held with series of intensive meetings with а number of global investors.
On July 15th 2021 BEH successfully placed a bond issue in the amount of EUR 600 million at an annual interest rate of 2.45 per cent. As investors’ interest was very strong, the bond was 2.3 times oversubscribed and the interest rate achieved is the lowest one since the company has been participating on the international financial markets. On its previous Eurobond issues on the international financial markets, respectively in August 2016 BEH EAD achieved an interest rate of 4.875%, while the interest rate of June 2018 bond issue was at 3.5%.
On July 15th 2021 BEH also achieved a 7 year maturity of the Eurobond issue in August 2028. The achieved lower interest rate and longer tenor of the issue will help the company to further reduce its annual interest expenses and to optimize its debt repayments schedule over a longer period of time.
The proceeds raised from the issuance will be used to refinance the EUR 550 million 4.875 per cent bond issued in 2016 which matures in August 2021, as well as for general corporate purposes, excluding coal-related activities.
The organizers of the bond issue, represented by JPMorgan and Citiroup, as well as the legal advisors Allen & Overy LLP and Linklaters LLP, took into account the efforts made by BEH EAD in the preparation of all documentation on the issue, as well as the institutional support provided in the process of Eurobonds placement by the Ministry of Energy of the Republic of Bulgaria, in its capacity as sole owner of the capital of Bulgarian Energy Holding EAD.