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EBRD to lend €60mn to Bulgarian Eurohold subsidiary for acquisition of CEZ’s local assets

The European Bank for Reconstruction and Development (EBRD) said it will lend €60mn to Eastern European Electric Company B.V., a fully owned subsidiary of financial and insurance group Eurohold Bulgaria, which will be used for the acquisition of the local assets of Czech CEZ Group.

Part of the sum also will be spent on CEZ Razpredelenie Bulgaria AD's 2022-2024 digitalisation and distribution network upgrade programme.

The loan will have a five-year repayment period, the EBRD said but gave no further details.

Earlier in 2021, Eurohold was allowed to acquire the local assets of Czech company CEZ, financing the deal with its own funds and bank loans.

Eurohold has said that it will raise up to €100mn in a capital hike to fund the acquisition of the assets, with the total value of the deal being €335mn.

In April, the company said that it has mandated J.P. Morgan AG to act as its lead and exclusive arranger for structuring the debt financing of the deal for the acquisition of the CEZ’s local business.