SDN-KEPCO Veliko Tarnovo Solar Plant

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A 50-50 joint venture of SDN Company and Korean South-East Power (KOSEP) had reached financial closure on the 42 MW Veliko Tarnovo Solar PV project. The project consisted of two 21 MW solar plants in Zlataritsa and Samovodene, Central Bulgaria. KOSEP is a subsidiary of the power generation company KEPCO. Construction of the project started in December 2010 and was planned to be completed in September 2011. Negotiations over the contract were done via a delegation of South Korea and the Bulgarian Prime Minister Boiko Borisov. The investment is part of a larger investment plan totaling EUR 500 million ($671 million) in Bulgarian projects by SDN. As part of the deal, SDN announced a BGN 1 million ($686,000) corporate social responsibility grant towards the Bulgarian Ministry of Economy, to be spent freely. The project received a renewable energy license from the State Energy and Water Regulatory Commission (SEWRC), as well as a contract for selling electricity to the National Electricity Company (NEK). The developer also invested $5 million in the local substation, to be tranfered to the government upon commissioning. Total investment in the project was reported as EUR110 million ($146 million) in debt, and EUR43 million ($57 million) in equity. The debt/equity ratio was thus 72/28. The debt was structured as a EUR101 million ($134 million) 12 year loan and a EUR9 million ($12 million) 18 months revolver loan arranged by KDB. Syndication took place on 9 March 2011. Financing was provided by the Korea Development Bank (KDB), Korea Finance Corporation (KoFC), Hyundai Marine & Fire Insurance, Green Cross Life Insurance, KT Capital and Tong Yang Life Insurance. The PPP fields below reflect distribution of total debt ($146 million) equally between institutions, six equal portions of $24.3 million. The project was commissioned in March 2012.