BiH's ERS plans to issue EUR 70m bond to finance new projects
Date: December 14th 2021
Bosnian Serb power utility ERS plans to issue a EUR 70m bond in January through the Vienna Stock Exchange, which will help finance the construction of two hydro power plants, it announced on Tuesday.Proceeds from the planned auction will finance the construction of the 93 MW Buk Bijela hydro power plant on the Drina River in eastern Bosnia and Herzegovina (BiH) and the 34 MW Bistrica hydro power plant on the Bistrica River, the Drina’s tributary in BiH, a spokeswoman for ERS told Montel.
“The date of the issue has not yet been set but it will definitely be in January,” added Ana Bokonjic.
ERS, which is majority-owned by the Bosnian entity government of Republika Srpska, is the first power utility in the Western Balkans to tap into an international capital market.
The utility plans to invest EUR 1.25bn by 2029 to add 1,000 MW in renewable energy capacity. ERS also expects to post record profits this year on the back of higher electricity sales, said Bokonjic.
The utility currently operates two coal-fired power plants, as well as three large and several small hydro power plants.
As part of its long-term plan to shift away from coal, it also aims to build solar power plants on abandoned coal mines and ash landfills, as well as the 48 MW Hrgud wind farm near Berkovici in the country’s south.