MVM Hungarian Electricity Ltd. and the European Investment Bank has entered into a long-term facility agreement with a credit line of EUR 100 million or, at today’s exchange rate, more than HUF 30 billion. The MVM Group will finance the transmission network projects of MAVIR Ltd. from the funds.
The cooperation between the European Investment Bank (EIB) and MVM Hungarian Electricity Ltd. has reached a new stage. MVM Ltd. signed a new investment facility agreement for a credit line of EUR 100 million with the credit institution on 4 October 2018. This is the first financing transaction that is carried out from funds guaranteed by the European Fund for Strategic Investment (EFSI) in the domestic corporate sector.
‘We are glad that we can conclude the first EFSI corporate facility agreement with MVM Ltd. in Hungary under the auspices of the Juncker Plan, which has successfully placed the European Union’s investment activities on a new footing. We support large-scale projects, which develop the security, reliability and efficiency of the Hungarian and European energy systems’, said Vazil Hudák, Vice-President of the European Investment Bank.
‘The facility agreement concluded with the EIB demonstrates that one of the most significant financial institutions in the European Union has maximum confidence in the MVM Group and that the MVM Group is an energy operator at regional level as well. The funds will allow the development and expansion of key elements of the energy infrastructure in Hungary and the region, which will continue to improve the security and reliability of the transmission system in Hungary,’ said György Kóbor, Chairman and Chief Executive Officer of MVM Ltd.
The facility agreement signed with MVM Ltd. is aimed at financing the transmission network projects of MAVIR Ltd. operating as a subsidiary of the MVM Group in the 2018-2022 implementation period. With the targeted funding, the European Investment Bank will provide funds to the MVM Group for 15 years. The projects funded include the expansion of the transmission network between Hungary and Slovakia and the establishment and refurbishment of substations and transmission lines. With the projects to be implemented, the safe and reliable operation of the transmission network in Hungary and a sustained security of supply at European level can be ensured also in the long run along with the changes that will occur in generation, consumption and equipment. In addition, the developments will have positive effects also on the regional network in Central and Eastern Europe and cross-border capacities.