MVM Signs EUR 1.2 Bn Loan Contract for Power Plant

A contract for a EUR 1.2 billion syndicated loan for the construction of a 1,000 MW combined cycle gas turbine power plant in Tiszaújvaros (NE Hungary) has been signed, state-owned energy group MVM said on Friday.

MVM said the syndicated loan is provided by 11 banks on favorable terms. The loan is covered by the Italian export credit agency SACE, has a term of 16 years, and is the largest loan agreement in MVM's history.

The agreement was concluded with the participation of Citibank, N.A. London Branch and ING, acting as lead managers, and Intesa Sanpaolo, London Branch, as a credit line and ECA agent.

MVM said the facility will help with growing domestic electricity demand and the integration of additional renewable capacities into the system. The new base power plant strengthens energy sovereignty by reducing import exposures and contributes to the energy transition.

MVM noted that a construction contract for the power plant had already been signed in April with a consortium of Italy's Ansaldo Energia and Calik Enerji Swiss AG.