The proposed project will strengthen and stabilise SE’s non-sovereign debt portfolio in favour of EUR denominated credit facilities with longer tenor in preparation for the privatisation of Slovenske Elektrarne (launched last year) and to position itself for future growth. Proceeds will be used to refinance existing debt and lengthen and consolidate Slovenske Elektrarne debt profile.
The project supports the government’s objective of continuing liberalisation and privatisation of the electricity sector. The financial restructuring will stabilise, and simplify Slovenske Elektrarne’s debt profile, increasing the attractiveness of Slovenske Elektrarne to potential investors as well as facilitating the acquisition of the company by a new investor.
The project furthers the Bank’s Energy Policy (BDS00-10) which prioritises sector liberalisation and privatisation.
Slovenske Elektrarne’s principal objective is to decrease its financing costs and to graduate from sovereign guarantees and secured structures. This financing will have a positive demonstration effect in the international financial and capital markets
Slovenske Elektrarne, a.s., is a joint stock company wholly owned by the Government of Slovakia through the National Property Fund. It is the largest electricity generator in the Slovak Republic, as well as one of the largest companies in the country.
The Bank has been requested to provide a 7-year tranche of up to EUR 30 million loan which is otherwise not available on the bank market.
A commercial bank syndicate has been mandated to provide an unsecured re-financing facility of up to EUR 350 million, which will be made up of an EBRD tranche and a commercial bank tranche.
Screened C/1. There are no environmental issues associated with this transaction. Slovenske Elektrarne ’s corporate environmental management and policy were reviewed as part of the first environmental due diligence for the EBRD’s first loan to Slovenske Elektrarne in 2001. It showed that SE is in compliance with relevant national environmental standards and has all the necessary operating permits. SO2 and particulate emissions at some of the older thermal units slightly exceeded applicable EU standards. However, these units are either scheduled for closure (SO2) or will be fitted with emission control upgrades (particulates). Hydro plants, nuclear facilities and the transmission system are in compliance with relevant national and international requirements. This corporate review will be updated by reviewing the latest Annual Environmental Reports and environmental and health and safety reports prepared during SE’s process for acquiring ISO 14001 Environmental Management System certification.
This section will be updated as soon as the environmental due diligence has been completed.
Ivan Lovisek, Executive Director for Financial Policy
Tel: +421 2 5866 3420; Fax: + 421 2 5866 3344
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