EBRD mulls lending €17.5mn to Bulgaria’s VEZ Svoghe for new greenfield renewable energy projects

The European Bank for Reconstruction and Development (EBRD) said it is considering providing long-term financing of up to €17.5mn to Bulgarian hydropower plant managing company VEZ Svoghe for the development of new greenfield energy projects.

“The proceeds of the loan will be used to refinance the existing EBRD loan and provide additional funds to enable the sponsor to develop new greenfield renewable energy projects (wind or solar) in countries where the EBRD invests, of a minimum amount equivalent to the EBRD loan amount,” the EBRD said in a project notice.

The company owns and operates a portfolio of five small hydropower plants with a total installed capacity of 15.5MW along the river Iskar. It is majority owned by Petrolvilla Bulgaria, which is controlled by Italian Petrolvilla & Bortolotti S.p.A. group.

The EBRD financing will be part of a larger financing package, worth €28mn. The remaining sum will be provided by a commercial bank, the EBRD noted, but provided no further details.