Business life: My finance news blog

Czech energy group CEZ will take out a one-year loan to finance the acquisition of a 7% stake in Hungarian oil and gas company MOL. According to Spokesperson Eva Novakova, CEZ is currently looking into financing requirements to determine the size of the loan, Czech commercial bank Ceska Sporitelna said in its daily report.

As reported earlier, CEZ and MOL have agreed to form a strategic alliance and build several power plants in cooperation with each other. The agreement specifies the terms on which CEZ is to acquire a 7% stake in MOL.

According to the latest news, CEZ is expected to finance the transaction with a loan extended by three commercial banks: ING Groep NV, Intesa Sanpaolo SpA and Ceskoslovenska Obchodni Banka no teletrak payday loans. –>. The interest on the one-year loan is Euribor+17bp, which is currently 4.8%.

The announcement is good news for investors as CEZ’s debt rate is very low compared with the industry average, thus the company may optimize its capital structure with a new loan. The size of the loan is not expected to exceed EUR 560 million.
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