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Energo-Pro a.s Eurobond

Bulgaria, Georgia | Utilities

Identification Code:: OP/17/0060
Total Operation Cost:: 370.000.000 EUR
Maturity:: 60 months
Operation Status:: BSTDB Approved Amount – Approval Date

42.000.000 EUR – 17 Nov 2017
: BSTDB Signed Amount – Signed Date

42.000.000 EUR – 30 Nov 2017
: Status:
Completed
Description and Purpose of the Operation:: Non-call three year senior unsecured guaranteed Eurobonds at the Irish Stock Exchange
Countries of Operation:: Bulgaria (95,24%), Georgia (4,76%)
Financial Product:: Loans
Sector:: Utilities
Domain:: Private
Borrower/Client:: The Issuer is Energo-Pro a.s., the Czech Republic.
Co-Financers/Participants:: Institutional investors across Europe.
Guarantors/Sponsors:: ENERGO-PRO Georgia Generation JSC, ENERGO-PRO Georgia JSC Conditional Guarantor ENERGO-PRO VARNA EAD
Developmental and Regional Cooperation Impact:: BSTDB participation in the Operation would: Generate additional export and tax revenues; Contribute to the activities of successful companies/Group in Bulgaria and Georgia while overall bond proceeds will also contribute to their activities in Turkey 3 BSTDB member countries; Bring-in development impact and promote cooperation among member states via investments and exports; assist in the promotion of intra-regional trade, especially of capital goods, among the Member States; finance productive projects and enterprises in the Member States; and promote investment in economic and social infrastructure projects in the Member States, by way of guarantees, participations and other financial arrangements in both the public and the private sectors.
Environmental Classification and Impact:: The operation has been assigned E&S Category B. The E&S due diligence was carried out at the corporate level, covering its subsidiaries in Bulgaria, Georgia and Turkey and concluded that the E&S risks and impacts associated with the operation are unlikely to be significant. The subsidiaries proved to be compliant with the applicable E&S laws and regulations, and the risk of material non-compliance that could result in penalties, fines, corrective actions, or operations being reduced, suspended or closed down was assessed as very low. The subsidiaries show different level of commitment and approach towards managing the E&S issues, the most developed in this respect being by far Energo-Pro Bulgaria, which certified its occupational, health and safety management system in line with OHSAS 18001, and its quality management according to ISO 9001. The Georgian and Turkish subsidiaries are guided mainly by the prescriptions of the national legal and regulatory framework, which provides only basic minimum requirements. Lack of recognized management systems may not allow the subsidiaries to prevent efficiently the E&S risks and impacts associated with power distribution and generation, and address any issues in a systemic and continuous basis, and respond adequately in cases of occurrence of emergency situations. This is of particular concern considering the materiality of such risks as dam safety and integrity, and potential impacts of flooding on the downstream communities, but also the risks associated with power distribution potential electromagnetic hazards. The applied labour and working conditions meet the national labour codes, with adequate HR policies and terms and conditions of employment. The Georgian subsidiary registered the highest rate of fatalities, amounting at 5 cases in the last two years, which indicates the need for stricter occupational, health and safety rules and enforcement among employees. In terms of pollution prevention and abatement Energo-Pro a.s. meets the limits of emissions, discharges, and waste generation, including of hazardous wastes.
Operation Leader:: Energy & Infrastructure, General Industries, Transport, Tourism 2
E-mail:: ei@bstdb.org,gitt2@bstdb.org