Czech EPH signs €1bn finance deal

Czech energy conglomerate EPH signed a new €1bn ($1.2bn) three-year revolving facilities agreement with a banking syndicate comprising several international banks and the domestic Komercni banka March 16, it said March 30. The company said it was one of the biggest of its kind in the Czech loan market this year.

The facilities were arranged, among others, by Bank of China, Commerzbank, Credit Suisse, ING, SMBC and UniCredit Citibank Europe. Law firm Baker & McKenzie was the banks' legal advisor.

The facilities are unsecured and have the same repayment rights as EPH's other debts. EPH intends to use proceeds of the facilities primarily to refinance certain other debts; to support future growth; and for general corporate purposes.

"Though this deal closed amid Covid-19 pandemic, EPH managed to further optimise its financing structure, while maintaining its low leverage ratio compared to its peer groups in western Europe," it said.

EPH has been investing in coal and lignite capacity, among other assets. Last year it bought Uniper's lignite power plant in Schkopau for an undisclosed sum. According to Germany's coal exit plan, the plant is due to operate until 2034.