EBRD considers up to USD 110 mln loan to Galnaftogaz

The European Bank for Reconstruction and Development is considering financing Galnaftogaz (UX: GLNG UK) with a loan of up to USD 110 mln to support a USD 210 mln investment program over the next two years. The announcement was posted on the EBRD website Friday, May 6, following an IFC board meeting. As previously announced by EBRD, the bank would match IFC loans of USD 80 mln and consider an additional USD 30 mln equity injection, potentially raising its stake in Galnaftogaz from 10% currently to 19%. The decision is scheduled for June 14. Of the entire USD 210 mln, Galnaftogaz plans to direct USD 150 mln toward increasing its retail network by 75 stations, while the other USD 60 mln will go toward mezzanine debt refinancing.