EBRD to extend 60 mln euros loan to Bulgarian Eurohold

The European Bank for Reconstruction and Development (EBRD) said on Wednesday it would extend up to 60 million euros ($73.10 million) in a five-year senior loan to Eurohold for its acquisition of Czech CEZ’s Bulgarian assets, informs Reuters.

Bulgarian financial and insurance group Eurohold will use the proceeds from the EBRD loan, along with a planned capital increase and other senior loans to complete its 335 million euro deal with CEZ by the end of June.

Eurohold has mandated JP Morgan to structure the debt financing for the overall acquisition, which it sees at about 490 million euros. The EBRD estimated the total costs at 525 million euros.

Part of the proceeds of the EBRD loan will be used for upgrades at a power distributor Eurohold will acquire, the EBRD said in a statement.