Slovenské elektrárne, the largest power generating company in Slovakia, has successfully entered into a new €3.6 billion Term and Revolving Facilities Agreement with a syndicate of international banks. This is the largest corporate debt refinancing in Slovakia to date.
Lenders under the Term and Revolving Facilities Agreement have committed to provide funding to Slovenské elektrárne in an aggregate amount of €3.6bn equivalent split across €1,665m of amortizing 3-year term loan, €1,665m bullet 5-year term loan and a €250m 2-year revolving credit facility. The proceeds will primarily be used to refinance existing senior and subordinated indebtedness and fund general corporate purposes, including working capital.
Branislav Strýček, Chairman of the Board and CEO of Slovenské elektrárne, commented:
"This means we will pay lower interests, and our collateralized assets will be liberated. The refinancing is a clear sign of the banks' confidence in our Company. It is the best endorsement we can receive when financial institutions demonstrate the robust trust in our Company's stability and prospects, particularly given our predominant focus on nuclear power generation. Completing the nuclear power plant Mochovce 4 is the Company's primary short-term objective."
UniCredit acted as Global Coordinator and Agent, with A&O Shearman serving as Slovenské elektrárne’s legal advisor and Clifford Chance as lenders’ counsel.
Slavomír Beňa, Deputy CEO of UniCredit Bank, commented:
"UniCredit is honoured to have acted as Global Coordinator and Agent for this landmark transaction, which stands as the largest deal of its kind in the history of Slovakia. This achievement underscores our commitment to deliver innovative financial solutions and highlights our position as a leader and a trusted partner in supporting major transformational projects for our clients and the region’s economic growth and sustainability."
Michele Amadei, UniCredit Head of Corporates CEE, commented:
"Our role as Global Coordinator confirms our status as a leading bank in Central and Eastern Europe and our ability to meet the full range of our clients’ needs with diverse and tailored solutions. This deal was a milestone for all of us and continues our excellent and long-term relationship with Slovenské elektrárne."
With over a 70% share of the total electricity produced in Slovakia, Slovenské elektrárne is the largest power generating company in the country. After shutting down its last coal-fired power plant at the end of the first quarter of 2024, Slovenské elektrárne now produces electricity free of direct CO2 emissions, operating 5 nuclear units, 31 hydroelectric and 2 photovoltaic power plants.
The company's commitment to producing electricity from low carbon sources positions it as a leader in sustainable energy production in Central and Eastern Europe. The company has been included three times in the prestigious Europe's Climate Leaders index, prepared since 2021 by the Financial Times and Statista.
Slovenské elektrárne, a.s. has two shareholders. The majority shareholder is Slovak Power Holding B.V. (SPH), owning a 66%. In SPH, 50% of the share capital is owned by the Czech energy group Energetický a průmyslový holding (EPH), and the remaining 50% is owned by Italy's largest electric company Enel. Slovak government controls 34% of SE.
In December 2024, Enel and EPH signed an agreement through which EPH, as foreseen by the “early call option”, will purchase the 50% of the share capital, currently held by Enel in SPH. The closing of the transaction, expected to occur in the first half of 2025, is subject to certain conditions precedent, including regulatory approvals.
