EBRD approves USD 110 mln financing package for Galnaftogaz
15 June 2011
The European Bank for Reconstruction and Development granted Galnaftogaz (UX: GLNG UK) a financing package totaling up to USD 110 mln to fund a USD 210 mln investment program over the next two years, Interfax reported yesterday, citing the press secretary of the EBRD in Ukraine. According to the program, Galnaftogaz is due to receive a USD 15 mln type A loan, USD 45 mln syndicated type B loan, and USD 20 mln in a mezzanine type C loan. Another USD 30 mln will constitute an equity injection, potentially raising the EBRD’s stake in Galnaftogaz from 10.3% currently to 19%. Of the USD 210 mln investment program, 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.
