EBRD considers providing Galnaftogaz with USD 50 mln financing

According to Interfax, the European Bank for Reconstruction and Development (EBRD) may provide Galnaftogaz (GLNG) with a USD 50 mln financing, in the form of either equity or subordinated debt. According to the EBRD’s announcement, the funds will be used to finance Galnaftogaz’s USD 110 mln development program through 2012, which includes acquisitions, CapEx program, and buildup of the company’s working capital. By the moment, EBRD has provided the company with two credit lines maturing in 2012 and 2016, for a total of USD 125 mln. According to quarterly unaudited financials, at the end of 3Q08 Galnaftogaz’s outstanding debt amounted to UAH 1,415 mln, out of which UAH 1,052 mln in long-term loan facilities (USD 291 mln and USD 216 mln at the respective official central bank’s rate of UAH 4.86/1 USD). The company’s equity amounted to UAH 1,013 mln (USD 208 mln).