6 September 2011
Galnaftogaz (UX: GLNG UK, U/R) said it planned to use part of the proceeds from its USD 190 mln in loans arranged by the European Bank for Reconstruction and Development and International Finance Corporation to expand its OKKO-branded fuel station network to over 500, from 298 currently, the company said in a press release yesterday. Galnaftogaz signed the loan agreements yesterday. The debt package is composed of different loans with six to nine years maturity. Galnaftogaz also signed a USD 30 mln share purchase agreement with EBRD, which already controls 10% of the company, which would potentially raising the EBRD’s stake to 19%. The share purchase agreement is in line with the company’s restructuring plans prior to an IPO. Another portion of loan proceeds will be directed at improving energy efficiency.