Czech Export Bank supports EUR 440mn power plant construction in Turkey.

By bne IntelliNews March 4, 2011
State-owned Czech Export Bank (CEB) has started financing and providing guarantees in the amount of CZK 11bn (EUR 451.7mn) to support the construction of a new thermal power plant and a brown-coal mine in Turkey, CTK newswire informed quoting CEB spokesperson Jiri Pekarek. Czech companies Ferrit, BTG Energy and Vitkovice Power Engineering were selected to build the plant by Turkish Adularya. The total cost of the project is EUR 440mn, as the Czech companies investment represents 81.6% or EUR 359mn. CEB signed contracts for loans and guarantees in the amount of CZK 43.8bn in 2010, up by 74% y/y, as the biggest contract was the project in Adularya. A large part of CEB loans are insured by state-owned Export Guarantee and Insurance Corporation (EGAP). The state owns 72.9% in CEB, while the remaining 27.1% share is held by EGAP. In August 2010, Standard & Poors revised CEB outlook to positive from stable in line with the countrys long-term foreign currency rating and affirmed its A/A-1 foreign currency rating on CEB. Moodys lowered its outlook on CEB to stable from positive affirming its long-term foreign currency and senior unsecured debt at Aa1. The government plans to raise the capital of CEB and EGAP by up to CZK 2bn this year - CEB capital will be hiked by CZK 998mn and that of EGAP by CZK 1bn as the government is seeking to ensure stronger support for local exporting companies.

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