ENA signs new loan agreement – The Eurasian Development Bank (EDB) this week agreed on a new loan facility with Electric Networks of Armenia (ENA). The deal was reported on 28 December 2018 and published on the Eurasian Development Bank website.
The arrangement allows ENA to finance its current operations and obligations while the firm negotiates further funding and long-term credit packages with international institutions.
ENA signs new loan agreement
The document was signed in the Armenian capital of Yerevan and envisions the provision of a renewable credit line. The deal affords credit to the business The EBD’s share in the funding of the investment program will be $40 million. The credit line is reported to have been provided on a competitive basis and not on a privileged basis. The ongoing ENA investment program now totals $726 million.
According to the ENA website CJSC “Electric Networks of Armenia” (ENA) was founded in May 2002 following a merger of four state regional companies (“Yerevan Electric Networks,” “North Electric Networks,” “South Electric Networks” and “Central Electric Networks”) distributing and selling electric energy. The company is mainly engaged in regulated distribution and sales of electrical energy.
The press release was published on EDB’s website on the 28th December and is outlined below:
Yerevan, 28 December 2018. The Eurasian Development Bank (EDB) and Electric Networks of Armenia (ENA) signed a loan agreement to refinance ENA’s current loans and finance its current operations. The agreement was signed by Vsevolod Smakov, Manager of Project Block 1 at the EDB, and Karen Harutyunyan, Director of ENA.
The Bank agreed to provide a revolving loan facility to refinance ENA’s current loans and finance its current operations.
In addition to the loan facility, the Bank is negotiating with ENA and other international financial institutions (EBRD, ADB, IFC) the arrangement in 2019 of a long-term credit package to finance ENA’s future investment programme until 2027. The aim is to modernise its distribution networks and substations, connect new consumers, replace and install electricity meters, and introduce an automated metering system, a management information system and global management standards (ISO). The Bank is expected to contribute $40 million to the investment programme.
The project will ensure uninterrupted supplies and distribution of electric power in Armenia. It is also expected to contribute to Armenia’s sustainable economic growth, help to maintain employment, and ensure stable electricity supplies to consumers.
The loan agreement was signed at the EDB’s office in Yerevan.
The Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. The EDB’s charter capital totals US $7 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan.
Electric Networks of Armenia (ENA) was incorporated in May 2002 in Yerevan by merging four regional electric power networks: Yerevan Electric Networks, North Electric Networks, South Electric Networks, and Central Electric Networks. In September 2015, the Tashir Group of Companies signed an agreement with Inter RAO Group on the purchase of its electric power assets in Armenia. Since late 2015, Tashir has taken over all obligations to manage ENA. The company holds an exclusive licence to distribute electric power in Armenia at the rates set by the Public Services Regulatory Commission of Armenia.
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Danny Deegan is the Editor and proprietor of eurasianmarket.com. Born in the UK, currently working in financial services with an emphasis on equity investments and forex trading.