EBRD to invest €50m in Bulgaria’s initial bond issuance by EEEC

The European Bank for Reconstruction and Development (EBRD) has made a €50m investment in the €500m senior secured bond issuance by Bulgaria’s Eastern European Electric Company (EEEC).

The bond issuance signifies the first publicly listed, euro-denominated, benchmark-sized bond by a Bulgarian private firm in international debt capital markets.

The issuance was priced on 8 May 2025 and subsequently listed for trading on the Euro MTF market of the Luxembourg Stock Exchange on 15 May.

EEEC functions as the energy sub-holding of Eurohold Bulgaria, a leading independent business group in central and southeastern Europe.

The group maintains key positions in both the insurance and energy industries, further enhancing its impact in the region.

The successful bond issuance is likely to motivate other private enterprises in Bulgaria and central and eastern Europe to seek opportunities in international capital markets.

This could result in increased investment in the region’s infrastructure and energy sectors.

Funds from the bonds acquired by the EBRD will be directed towards modernising the electricity grid at Electrodistribution Grid West throughout the bond’s five-year duration.

The modernisation initiative includes the installation of smart meters and enhancements to underground electricity lines.

These improvements are expected to aid in climate change mitigation efforts, with anticipated energy savings of up to 194 gigawatt hours annually.

This initiative is vital for Bulgaria as it strives towards its ambitious target of net-zero greenhouse gas emissions by 2050.

Bulgaria currently ranks as the EU’s most energy-intensive economy, making these developments particularly noteworthy.

The EBRD has already invested €4.8bn across 307 projects in the country, underscoring its commitment to the nation’s economic advancement and sustainability.

EBRD Bulgaria head Manuela Naessl stated: “This landmark transaction is not only a notable step forward for Bulgaria’s green transition but also enhances the country’s visibility in international debt capital markets.

“Our €50m investment supports the modernisation of critical energy infrastructure while setting a strong precedent for other private sector issuers in the region.”

In April 2025, EBRD planned to offer €1bn aid to Ukraine’s war-damaged energy sector and to enhance the country’s energy resilience.