BSTDB extends €160m loan to PPC for investment support

The Black Sea Trade and Development Bank (BSTDB) has provided a 160 million-euro loan to Greek power utility PPC to support the company’s capital expenditure plan, the bank has announced in a statement.

Guaranteed by the Greek State, the loan represents the largest BSTDB financing to date, the bank noted.

The proceeds of the loan will be used to finance PPC’s capital expenditures for the upgrade, modernization and expansion of the distribution network, which serves approximately seven million customers all over Greece, the BSTDB statement noted.

Signing the agreement, BSTDB President Dmitry Pankin commented: “Our support to PPC, a core electric power provider and employer, reaffirms BSTDB’s strong commitment to supporting economic recovery and sustainable growth in Greece. Electricity network infrastructure is essential for the economy and everyday life of people. We are pleased that our funding will help PPC to develop and improve its operations and network across the country.”

PPC’s chief executive Manolis Panagiotakis remarked: “Capital expenditure in the distribution network is critically important as it will cover rising demand due to economic growth and result in stable attractive returns for the PPC group…The loan represents the commencement of cooperation between PPC and BSTDB which we expect to expand in other areas as well.”

BSTDB is an international financial institution established by Greece, Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Moldova, Romania, Russia, Turkey, and Ukraine. The BSTDB headquarters are in Thessaloniki.

BSTDB supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects and trade financing in the public and private sectors in its member countries.

BSTDB approves €160m loan for PPC, bank’s biggest operation

The Black Sea Trade & Development Bank (BSTDB) board has approved the provision of a corporate loan to Greece’s main power utility PPC for an amount of 160 million euros with a 5-year tenor for the purpose of financing the corporation’s capital expenditure plan, the largest BSTDB operation to date, it has announced in a statement.

The operation is expected to have multiple benefits for the Greek economy, and the energy sector in particular, by improving the country’s energy mix and infrastructure, BSTDB noted in its announcement.

It will assist in restoring Greece’s economic growth by generating tax revenues, creating new jobs and boosting confidence in a vital sector of the economy, the statement added.

The operation marks the beginning of a valuable cooperation between BSTDB and PPC, the biggest power producer and electricity supply company in Greece with approximately 7 million customers, the BSTDB statement noted.

PPC currently holds assets in lignite mines, power generation facilities (conventional thermal and hydroelectric power plants) and distribution as well as RES units, accounting for approximately 60% of the total installed capacity in the country.

The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Greece, Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Moldova, Romania, Russia, Turkey and Ukraine.

The BSTDB headquarters are in Thessaloniki. BSTDB supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects and trade financing in the public and private sectors in its member countries.

The authorized capital of the bank is 3.45 billion euros. BSTDB is rated long-term “A-” by Standard and Poor’s and “A2” by Moody’s.

 

 

Energean signs $180m loan for Prinos, Epsilon development

Energean Oil & Gas has signed a US$180 million reserves-based senior facility agreement to finance further development of the Prinos, Prinos North and Epsilon oil fields, the company announced in a statement.

The loan agreement was reached with the European Bank for Reconstruction and Development (EBRD), the Black Sea Trade and Development Bank (BSTDB), the Export-Import Bank of Romania EximBank SA (EximBank Romania) and Banca Comerciala Intesa Sanpaolo Romania SA (Intesa Sanpaolo Bank), HSBC acting as the agent bank.

It represents an extension to an existing US$75 million loan signed with the EBRD in May, 2016.

The agreement now includes two facilities: a senior secured reducing revolving credit facility of up to US$105 million with the EBRD and BSTDB as lenders; and a senior secured revolving credit facility of up to US$75 million arranged by EximBank Romania and having EximBank Romania and Intesa Sanpaolo Bank as lenders.

The expansion of the existing loan agreement will support the company’s development program in respect of 41 mmboe (39.5mmbbls oil/6bcf gas) 2P reserves and 23.8 mmboe (22.9mmbbls oil /5.3bcf gas) 2C resources in the Prinos, Prinos North and Epsilon operating oil fields, located offshore Greece (Prinos Basin).

The financing will principally fund the ongoing development of the Epsilon oil field with GSP Offshore S.R.L, the appointed EPCIC contractor, as part of the ongoing Prinos development program that includes the drilling of up to 25 additional wells and construction of two additional well platforms by 2021 to materially increase production.

Energean Oil & Gas CEO, Mathios Rigas, commented: “Energean is delighted to sign this agreement with EBRD, BSTDB, EximBank Romania and Intesa Sanpaolo Bank to support the further development of our North-Eastern Greece assets. We are committed to increasing our investment in the Prinos Basin, where we already have a strong production track record, and are now focusing on developing the Epsilon oil field, which is part of the Prinos Licence.

“We believe this loan agreement is further evidence of the trust placed in Energean by international banks and we believe demonstrates confidence in the Company’s ability to consistently increase value for its shareholders.

“The development program underway at Prinos, where Energean holds a long-term offtake agreement with BP for the entire Prinos production, is part of the company’s wider development plans in the eastern Mediterranean. This includes the company’s flagship US$1.6 billion development project of the Karish field, offshore Israel, as well as development and exploration programmes in Western Greece and the Adriatic. Energean is making strong progress on all fronts and is moving towards fulfilling its goal of becoming a leading independent E&P company in the East Mediterranean region.”

Ihsan Ugur Delikanli, BSTDB President, commented: “We are happy to contribute to this operation bringing substantial development impact to the Greek economy, including export promotion, job creation and increased revenues for the state budget. It is particularly fulfilling to join forces with our partners in supporting Greek businesses. I am pleased to observe the strengthening of cooperation with EBRD and the engagement of Export-Import Bank of Romania in a deal that will increase Greece‘s energy efficiency.”

Eric Rasmussen, EBRD Director, Head of Natural Resources, said: “We are very pleased to be involved in this transaction which will strengthen Energean’s strategic growth plans with the participation of two important new financial partners.”