Galnaftogaz signs USD 50 mln equity deal with EBRD

Galnaftogaz (GLNG) said on Friday that it signed a term sheet with the European Bank for Reconstruction and Development on a new investment project that will see the EBRD contribute USD 50 mln to the company’s share capital. The company said it will use the financing for the company’s acquisition and capital expenditure program as well as energy efficiency investments until 2012. Local news reports this morning indicated that the EBRD would receive less than a 25% stake in Galnaftogaz in return for the investment. The EBRD board of directors will consider approving the acquisition at a meeting on March 24, with a final decision up for vote by EBRD shareholders on April 27. The EBRD gave Galnaftogaz a USD 25 mln loan in 2005 and USD 200 mln loan in 2007.