EBRD OKs USD 50 mln capital injection for Galnaftogaz

The European Bank for Reconstruction and Development will provide a USD 50 mln capital injection to Galnaftogaz (GLNG), according to Interfax. The measure was approved by the EBRD’s board of directors yesterday. The funds are planned to be directed to Galnaftogaz’ investment program through 2012, and energy efficiency. The EBRD and Galnaftogaz signed the relevant letter of intent in February. Andriy Gerus: In telephone conversation Galnaftogaz IR Director Andriy Khudo confirmed this information and provided additional details. The capital injection will be two staged: first stage – additional share issue, in the amount of USD 20 mln, in which the major shareholder will transfer his rights to subscribe to the EBRD (subscription will be at a price close to the market price, as agreed by Galnaftogaz and the EBRD), and be completed in December 2009 – January 2010; with the second stage, in the amount of USD 30 mln, in an additional share issue in 2010.