EBRD Invests €50M To Support Bulgaria's Electricity Grid Modernization

2025-05-17 03:06:31

(MENAFN- Trend News Agency) BAKU, Azerbaijan, May 17. The European Bank for Reconstruction and Development (EBRD) has invested 50 million euros in a 500 million euro senior secured bond issued by Eastern European Electric Company B.V. (EEEC), marking a milestone for Bulgaria's private sector in international capital markets, Trend reports.

The bond, priced on 8 May 2025 and admitted to trading on the Euro MTF Market of the Luxembourg Stock Exchange on 15 May, is the first publicly listed, euro-denominated, benchmark-sized bond issued by a Bulgarian private company in the international debt capital markets.

EEEC, a subsidiary of Eurohold Bulgaria AD, is focused on energy distribution and supply in Central and Southeastern Europe. The proceeds from the bond, including the EBRD's share, will be used to finance a grid modernisation programme carried out by Electrodistribution Grid West (EDG West) over the next five years.

The planned investments will support the installation of smart meters, upgrade underground electricity lines, and finance new or retroactive grid connections for renewable energy assets. These measures are expected to yield up to 194 GWh in annual energy savings and contribute to Bulgaria's climate targets, including its commitment to reach net-zero greenhouse gas emissions by 2050.

According to the EBRD, the transaction supports the modernisation of critical infrastructure while encouraging other private sector issuers in Bulgaria and across the region to access international capital markets.

“This landmark transaction is not only a notable step forward for Bulgaria's green transition but also enhances the country's visibility in international debt capital markets,” said Manuela Naessl, EBRD Head of Bulgaria.

The EBRD has invested nearly 4.8 billion euros across 307 projects in Bulgaria to date, with a continued focus on supporting sustainable infrastructure and private sector development.

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