The owner of "Electrohold" has completed its first bond issue for 500 million euros
The securities were subscribed by over 60 investors from 17 countries
Eastern European Electric Company B.V. (EEEC), a subholding of Eurohold Bulgaria AD and owner of the Electrohold group, announced the successful completion of its first bond issue worth 500 million euros, which marks a new stage in the company's development and is of great importance for the entire energy sector in Bulgaria.
The bonds are five-year, secured, issued in Reg S/144A format, their yield is fixed on May 8, 2025 and have an annual interest coupon of 6.500%. This is the first such international securities issue by a Bulgarian private company, making EEEC a pioneer in the country's financial market. The successful completion of this transaction reflects the company's strategic vision and ambitions to expand its presence in the international debt capital markets. In the course of the financial operation, EEEC also received a debut credit rating from leading global rating agencies - Ba2 (stable outlook) from Moody's and BB (stable outlook) from Fitch.
The bond issuance was preceded by a campaign aimed at a wide range of leading international investors with different profiles, which managed to achieve the issuer's objectives for price and size of the issue. Among the investors who participated were asset management companies, banks and hedge funds mainly from the UK, Europe and the US, as well as several from the Middle East. As a result of the high demand, orders worth over EUR 1.4 billion were placed and the issue was oversubscribed 2.8 times. EEEC's bonds were acquired by over 60 investors from 17 countries, which clearly confirms the company's solid creditworthiness and high confidence in it.
The price of the securities was set at an annual yield for investors of 6,500%, which is 25-50 basis points below the initial price indications of 6,750% to 7,000%. This favorable result confirms EEEC's strong market position and the company's attractive profile for investors. It is also an assessment that the issuer achieves high results in the current market conditions. The proceeds from the bond issue will be used to repay in full an existing syndicated loan and related expenses, for general corporate purposes, as well as to make payments under a portion of another loan agreement at the holding company level.
“This first-of-its-kind bond issue is a landmark event that confirms our success since we acquired our energy business. The strong investor interest and the oversubscription of the issue are indicative of the company’s good credit profile and our strategic market position,” said Assen Hristov, Chairman of the Supervisory Board of Eurohold. “The bond issue reflects the solid foundation we have built and the high investor confidence,” said Kiril Boshov, Chairman of the Management Board and CEO of Eurohold. “The implementation of this transaction is the result of our strategic achievements and at the same time emphasizes our high creditworthiness and capacity to attract leading investors,” added Vasil Stefanov, Head of Investment Banking, Mergers and Acquisitions at Eurohold.
The bonds were issued under the following terms:
● Total nominal value: 500 million euro
● Format: Reg S/144A
● Issue value: 100% of the nominal value of the bonds
● Maturity: May 15, 2030
● Interest coupon: 6.500% per annum
● The bonds are expected to be listed on the Luxembourg Stock Exchange, Euro MTF market segment
The EEEC bonds were allocated on May 8, 2025, and settlement took place on May 15, 2025. Leading American investment bank J.P. Morgan is the bookrunner and lead manager of the issue, as well as an advisor on its rating.