Croatia, Government approved HEP’s 63 million euros loan

, SEE Energy News

The Croatian Government said that it has granted approval to state-owned power utility HEP to take out a loan worth 63 million euros from the European Investment Bank (EIB).

The statement from the Government said that the loan proceeds will be used to refinance investments in renewable energy projects, namely six such projects: one wind farms and five solar power plants.

Earlier this month, the Government approved HEP’s two long-term loans to be provided by Privredna Banka Zagreb (PBZ) and Zagrebacka Banka (ZABA) in total amount of 174 million euros. The loans are intended to finance general business needs, i.e. to ensure an adequate liquidity reserve and sufficient funds to meet HEP Group’s liabilities, including financing the approved major investment plan in 2022, as well as financing its current liabilities. Both loans will have a 5-year maturity with fixed 0.42 % interest rate.

HEP Group recorded consolidated net profit of 166.8 million euros in the first half of 2021, which is about 30 % higher compared to the same period last year.