Government greenlights draft guarantee agreement with ING Bank H.B. to fund Bulgaria-Serbia Natgas Interconnector

At its regular meeting on 25 January, the caretaker Government approved the draft guarantee agreement between Bulgaria and the Dutch ING Bank H.B., to be concluded via the ING Bank H.B. Sofia branch, and authrorised the Minister of Finance to sign it. This will enable Bulgartransgaz EAD to conclude a state guaranteed loan agreement with the Dutch ING Bank H.B. via its Sofia branch for the funding of the Project of Common Interest 6.8.3 Gas Interconnection Bulgaria - Serbia (IBS).

The estimated investment costs of the Gas Interconnection Bulgaria – Serbia project amount to EUR 76.7 million (VAT excluded). It is envisaged that this resource will be secured through grant financing from Operational Programme Innovation and Competitiveness 2014-2020 and the Connecting Europe Facility (CEF), long-term loan financing secured by a state guarantee and Bulgartransgaz EAD's own capital.

The proposed state-guaranteed loan amounts to EUR 49,071,661 of up to EUR 49 071 661, drawdown period until 31.12.2023 and repayment period of five years from the expiry of the one-year grace period.