HEP d.d. repays USD 550 mln Eurobond

HEP d.d. repays USD 550 mln Eurobond

Hrvatska elektroprivreda d.d. (HEP) successfully repaid in full the Eurobonds issued on the international capital market in 2015.

The USD 550 mln seven-year bond issued at a yield of 6.125%, carrying a coupon of 5.875%, with the principal payable at maturity in 2022 has been successfully repaid in full.
HEP took advantage of the record-low interest rates in 2021 and a favourable price of financing in 2022 to agree loan deals under favourable terms, which it used alongside its own funds to completely repay the bond. The new loans have fixed annual interest rates of 0.42% and 0.62%, respectively.
"The successful repayment of the bonds is an indicator of the financial strength and continuous responsible management of HEP Group liquidity. This is confirmed by the negotiated interest rates on the loans that we used to pay off the bonds and which represent a significant reduction in the cost of borrowing. In the current circumstances this is sending a strong positive signal to the investment public", said Frane Barbarić, the president of HEP Management Board.