Serb Gas Monopoly Taps Credit Suisse, Deutsche Bank for Loans
Srbijagas JP, Serbia’s gas monopoly, is seeking to borrow 200 million euros ($264 million) of sovereign-backed loans to boost liquidity and finance works on the Serbian section of the South Stream pipeline.
Credit Suisse Group AG (CSGN) will lend 100 million euros, Vojvodjanska Banka AD and the Belgrade-based unit of UniCredit SpA (UCG) will lend 20 million euros each, while the London-based Deutsche Bank AG (DBK) will grant a total of 60 million euros, according to the draft law submitted by the government for parliament approval.
The cost of borrowing ranges from 5.95 percent to 6.95 percent over three-month Euribor, according to the government. The company borrowed 190 million euros in liquidity loans from seven banks in November.
Srbijagas has relied on sovereign-backed loans to bolster liquidity as the government kept gas prices below the market as three years of an economic decline increased unemployment and cut disposable incomes.
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