BSTDB

BSTDB loan to accelerate country’s hydrocarbons sector development

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Financing to support implementation of ongoing development of Energean’s Epsilon field in Prinos

The Black Sea Trade and Development Bank (BSTDB) is providing a loan of up to EUR 90.5 million to Energean Oil and Gas S.A. (Energean), the only Greek oil and gas producer. The proceeds will fund Energean’s investment plans – in particular the development of the Epsilon and Prinos fields – and will also support its working capital needs and the finalization of structural expenditures in the Prinos infrastructure complex.

The project will create jobs for suppliers of goods and services in the drilling and construction industries, as well as maintaining livelihoods in key Greek businesses amidst the on-going Covid-19 pandemic.

“Following the successful start of our cooperation in 2018, BSTDB’s continued support to Energean underlines our commitment to help Greece harness its indigenous natural resources for long-term economic growth, contribute to increased fiscal revenues and develop exports in the region. It will have an important development finance impact at a vital time when businesses try to recover from the global pandemic. Furthermore, while we are all committed to promoting renewable energy generation and cleaner energy sources, an essential element of this process is to ensure that the transition goes smoothly, and without disruptions that may undermine the shift to climate finance. Judicious use of fossil fuels, according to high standards of efficiency and pollution mitigation, remains a key part of ensuring the shift to greener energy generation,” said Dmitry Pankin, BSTDB President.

“Our new collaboration with BSTDB is crucial for the development of the Epsilon Oil Field that will extend the life of Greece’s sole hydrocarbon producing asset for several years. It also demonstrates the confidence the banking sector has to well structured and realistic development plans. Our goal is not only to further develop the hydrocarbon resources in the Gulf of Kavala, but also convert Prinos into a carbon neutral industrial complex that will be a landmark in the Mediterranean”, said Dr. Katerina Sardi, Energean Oil & Gas Managing Director and Country Manager in Greece.

Energean expects first oil from the Epsilon development in 1H 2023.

Energean Oil & Gas S.A. is a 100% subsidiary of Energean Plc, (LSE:ENOG TASE:אנאג), a London Premium Listed FTSE 250 listed E&P company with operations in eight countries across the Mediterranean and UK North Sea. Energean’s production comes mainly from the Abu Qir field in Egypt and fields in Southern Europe. The company’s flagship project is the 3.5 Tcf Karish, Karish North and Tanin development, offshore Israel, where it intends to use the newbuild fully-owned FPSO Energean Power, which will be the only FPSO in the Eastern Mediterranean, to produce first gas, commencing mid-2022. More info on: www.energean.com

The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey, and Ukraine. The BSTDB headquarters are in Thessaloniki, Greece. 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 EUR 3.45 billion. BSTDB is rated long-term “A” by Standard and Poor’s,  “A2” by Moody’s and “A+” by the Russian credit rating agency ACRA. For information on BSTDB, visit www.bstdb.org.

BSTDB extends €160m loan to PPC for investment support

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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

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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

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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.”