BEH of Bulgaria to Meet Potential Investors for Eur250M Bond
Reuters reported that the biggest energy holdings firm of Bulgaria, BEH, will be sitting down with possible investors in its EUR250 million or US$321.81 million bond issue on the latter part of July and early part of August, according to the announcement of its Chief Executive on Wednesday.
BEH had chosen Citigroup to spearhead the managing of the bond issue. It is planning to refinance its loan which will be invested in gas pipelines project.
Executive Mikhail Andonov of BEH had informed the Legislature of Bulgaria regarding its plan for financial meetings in Berlin, London, Vienna and Luxembourg. In the meantime, Citigroup has already granted an interim financing of EUR195 million to settle the debt of one of the subsidiaries of BEH with BNP Paribas.
The bond issue will be allotted for the settlement of the interim financing. In addition it will also be used to finance the gas pipelines project of the company that will include the Nabucco project which will bridge the Caspian area and the Middle East. It will also connect Greece and Bulgaria.
According to rating agency, Fitch, BEH is rated BB+ with a steady position. It is estimated to have assets with value of LEVS12.8 billion or US$8.42 billion. BEH is the owner of all the state's main power companies which consist of the natural gas source Bulgartansgaz and Bulgargaz, electricity utility NEK, Kolzloduy who operates the nuclear power plant and the Maritsa East Two thermal plant operator.