On 16 March 2021, Energetický a průmyslový holding, a.s. (EPH) signed a new EUR 1 billion term and revolving facilities agreement with a banking syndicate comprising of several international banks and Komerční banka, a.s. who acted as agent of the finance parties. The facilities were arranged, among others, by Bank of China (CEE) Ltd., COMMERZBANK Aktiengesellschaft acting through COMMERZBANK Aktiengesellschaft, pobočka Praha, Credit Suisse AG, ING Bank N.V., Prague branch, Komerční banka, a.s., SMBC Bank EU AG and UniCredit Bank Czech Republic and Slovakia a.s. who acted as mandated lead arrangers and bookrunners and Citibank Europe plc who acted as mandated lead arranger. Baker & McKenzie acted as legal advisor on behalf of lenders.
The facilities are unsecured and rank pari passu with other financial indebtedness of EPH and have a three-year term. EPH intends to use proceeds of the facilities primarily to refinance certain other financial indebtedness of the EPH group and for general corporate purposes.
Based on information available to EPH this transaction ranks among the largest banking financing deals made on the Czech loan market in 2021. Though this deal closed amid Covid-19 pandemic, EPH managed to further optimize its financing structure, while maintaining its low leverage ratio compared to its peer groups in Western Europe.
Pavel Horský, Chief Financial Officer and a member of the Board of Directors of EPH, stated: "I would like to thank all lenders participating on this deal, which we consider as our core relationship banks and with which we have cooperated for years. This is another transformational deal for the EPH group, which simplifies our financing structure, supports future growth and allows us to accomplish our strategy in the area of sustainability.”