Are you sure?

Banking syndicate lends €63 mln for MVM-Euroinvest power plant project

Hungarian power plant Bakonyi Villamos Művek Termelő (BVMT) said it signed a contract with a four-member syndicate of Hungarian banks for a €63 million project financing loan on February 11.

The loan is for a term of 15 years and will finance a high 80% of total investment costs.

The banking syndicate is lead-managed by MKB Bank and its members are Hungarian KBC unit K&H Bank, Erste Bank Hungary and OTP Bank.

BVMT is majority owned by Hungarian state electricity works MVM and the minority owner is Euroinvest, a company of Hungarian construction magnate Sándor Demján.

The loan will finance the joint construction of two new blocks of 58MW each at a plant at Ajka of Bakonyi Erőmű, a unit of Euroinvest.

The new gas-fuelled plant will operate as a yet missing peak power plant in the Hungarian electricity system.

Commercial operation is scheduled to start at the end of 2010. (MTI – Econews)