The European Bank for Reconstruction & Development (EBRD) is investing €50m to improve the electricity grid in Bulgaria.

The modernisation programme includes smart meter installations, underground electricity line upgrades, and new or retroactive grid connection financing for renewable assets, which are expected to contribute to climate change mitigation efforts and result in up to 194GWh of energy savings annually.

This is an important element in advancing towards Bulgaria’s ambitious net-zero greenhouse gas emissions target by 2050. Bulgaria remains the EU’s most energy-intensive economy.

The money will go to Eastern European Electric to invest in greening the electric grid in the next five years.

“This landmark transaction is not only a notable step forward for Bulgaria’s green transition but also enhances the country’s visibility in international debt capital markets,” said Manuela Naessl, EBRD head of Bulgaria.” Our €50m investment supports the modernisation of critical energy infrastructure while setting a strong precedent for other private sector issuers in the region.”

EBRD is investing €50m in the €500m senior secured bond issuance by Eastern European Electric. The issuance represents the first publicly listed, euro-denominated, benchmark-sized bond by a Bulgarian private company in international debt capital markets.

Eastern European Electric is the energy subholding of Eurohold Bulgaria (www.eurohold.bg), an independent business group in central and south-eastern Europe with key positions in insurance and energy sectors.

The issuance and the bonds were issued and admitted to trading on the Euro MTF Market of the Luxembourg Stock Exchange, marking a milestone for both Eastern European Electric and the Bulgarian energy sector. The success of the issue should encourage other private companies in Bulgaria and across Central and Eastern Europe to access international capital markets.

Eastern European Electric will allocate an amount equivalent to the proceeds of the bonds purchased by the EBRD to finance modernisation of the electricity grid at Electrodistribution Grid West (EDG West) during the five-year lifetime of the bond.

To date, the EBRD (www.ebrd.com) has invested nearly €4.8bn in 307 projects in Bulgaria.