Bulgaria to forego dividend from state energy holding – reports

Bulgaria’s Energy Ministry will not seek any dividend from the Bulgarian Energy Holding (BEH) for 2014, using the money instead to bolster the group’s equity capital as it seeks to borrow money to pay back debts owed by its electric utility subsidiary to two power plants owned by US private investors, reports in Bulgarian media said on August 12, citing filings with the country’s trade register.

According to the reports, the ministry was due to receive 239.5 million leva, or about 122.4 million euro, in dividend from BEH, the umbrella structure set up by Bulgarian government in 2008 to consolidate state-owned companies in the energy industry.

BEH is currently seeking to borrow at least 800 million leva for its subsidiary NEK, the state electric utility, which needs the money to pay back the debts owed to AES Maritsa Iztok 1 and ContourGlobal Maritsa Iztok 3 power plants as part of an agreement under which the two coal-powered plants would reduce the price at which they sell electricity to NEK.

To read the full story, please click here.

(AES Gulubovo power-plant. Photo: Gonzosft/Wikimedia Commons)