Croatia, Government has granted approval to HEP to take out a loan worth around 172 million euros, SEE Energy News
The Croatian Government said that it has granted approval to state-owned power utility HEP to take out a loan worth around 172 million euros from the OTP Bank Split.
HEP is planning to obtain two loans from OTP Bank Split: one worth 51 million euros and the other worth some 122 million euros. Minister of Economy and Sustainable Development Davor Filipovic said that HEP plans to obtain these two loans because, in 2015, it issued bonds worth 550 million dollars with an interest rate of 5.87 %, while borrowing from OTP Bank has significantly lower interest rates . For the first loan, the interest rate is 0.62 % and for the other is 0.42 %.
In late 2021, the Government granted approval to HEP to take out a loan worth 63 million euros from the European Investment Bank (EIB). 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.
HEP recorded a net profit in the amount of 173 million euros in 2021, which is 30 % lower compared to the previous year.