BAKU, Azerbaijan, September 12. Bulgartransgaz
EAD and United Bulgarian Bank AD signed an agreement for a
long-term loan in the amount of BGN 200 million (EUR 102.26
million) for targeted financing of investment activities on the
Vertical Gas Corridor, Trend reports via Bulgartransgaz.
In June this year, Bulgartransgaz carried out a procedure for
selection of a bank to finance the strategic project for
construction of a Vertical Corridor on Bulgarian territory. It
ended up demonstrating exclusive interest and the financing
institutions offered resource that exceeded the demand by nearly 8
times and amounted to EUR 781.8 million. The repayment term of the
loan agreement signed is consistent with the scale of the
investment and is provided under extremely favourable conditions –
an interest rate below 2% per annum. On September 10, the Council
of Ministers adopted a decision approving the draft guarantee
agreement between the Republic of Bulgaria and United Bulgarian
Bank AD regarding the long-term loan between Bulgartransgaz and UBB
for project funding.
The Vertical Gas Corridor project is a strategic initiative of
the gas transmission operators of Bulgaria, Greece, Romania,
Hungary, Slovakia, Ukraine and Moldova, which aims to ensure
secure, diversified and sustainable natural gas transmission in the
region and to strengthen Europe’s energy independence.
