State-owned Hungarian Electricity Works (MVM) signed a EUR 100 million long-term credit agreement with the European Investment Bank (EIB) in Budapest Thursday, state news agency MTI reported. The 15-year loan will be used to invest in the network of Mavir, the Hungarian transmission system operator (TSO).
Among the projects to be financed with the credit is an expansion of the interconnector between the electricity networks of Hungary and Slovakia.
The developments will not only improve the security of Hungaryʼs transmission system, but will also have a positive impact on the regional network of Central and Eastern Europe, as well as cross-border capacities, said MVM Chairman and CEO György Kóbor.
Kóbor noted that MVM and the EIB had signed credit agreements earlier, in 2010 and in 2014, to finance upgrades of the transmission system and gas storage facilities, to a value of almost EUR 250 mln.
The latest credit agreement is the first implemented in Hungaryʼs business sector using support from the European Fund for Strategic Investments (EFSI), said EIB Vice-President Vazil Hudák.
MVM had consolidated revenues of HUF 1.331 trillion last year. It has more than 12,000 people on its payroll.