Bosnian electricity distribution company Elektrokrajina is preparing to seek a €38 million loan from the European Bank for Reconstruction and Development (EBRD) to support a comprehensive upgrade of its distribution network and to refinance part of its existing debt. The proposed financing will be presented to shareholders at an upcoming assembly, where approval will be required before the process can move forward.
According to the proposal, the loan would have a maturity of up to 20 years, including a four-year grace period. The interest rate is expected to be linked to six-month Euribor plus 1%, reflecting standard market conditions for such financing arrangements.
The structure of the package also includes additional costs. A 1% approval fee is planned, along with a commitment fee of 0.5% per year on any undrawn funds. The total cost of arranging and implementing the credit line is estimated at around €13.8 million, which Elektrokrajina intends to finance from its own resources.
The majority of the funds—approximately €30 million—will be directed toward the rehabilitation and reconstruction of medium- and low-voltage electricity infrastructure. This investment is seen as a key step in modernizing the network and improving overall system performance.
Company management stated that the project is one of its most significant planned infrastructure initiatives, aimed at enhancing the reliability and quality of electricity supply for consumers. The upgrades are expected to reduce both the frequency and duration of power outages while also improving service standards across the distribution area.
In addition, the refinancing component of the loan is intended to strengthen the company’s financial position and support long-term stability. By restructuring existing liabilities, Elektrokrajina aims to improve its balance sheet and ensure more sustainable operations.
The company argues that the borrowing is economically justified, given the strategic importance of the network modernization, the relatively favorable financing terms, and the expected operational and financial benefits.
Elektrokrajina has also confirmed that the investment program will be implemented across its entire distribution network, making it one of the most extensive utility modernization projects currently planned in the Republic of Srpska.
