BAKU, Azerbaijan, September 12. Bulgartransgaz EAD and United Bulgarian Bank AD signed an agreement for a long-term loan in the amount of BGN 200 million (EUR 102.26 million) for targeted financing of investment activities on the Vertical Gas Corridor, Trend reports via Bulgartransgaz.
In June this year, Bulgartransgaz carried out a procedure for selection of a bank to finance the strategic project for construction of a Vertical Corridor on Bulgarian territory. It ended up demonstrating exclusive interest and the financing institutions offered resource that exceeded the demand by nearly 8 times and amounted to EUR 781.8 million. The repayment term of the loan agreement signed is consistent with the scale of the investment and is provided under extremely favourable conditions - an interest rate below 2% per annum. On September 10, the Council of Ministers adopted a decision approving the draft guarantee agreement between the Republic of Bulgaria and United Bulgarian Bank AD regarding the long-term loan between Bulgartransgaz and UBB for project funding.
The Vertical Gas Corridor project is a strategic initiative of the gas transmission operators of Bulgaria, Greece, Romania, Hungary, Slovakia, Ukraine and Moldova, which aims to ensure secure, diversified and sustainable natural gas transmission in the region and to strengthen Europe's energy independence.