IFC to support LPG terminals in Bulgaria

The International Finance Corporation, a member of the World Bank, is considering to support Bulmarket DM's LPG (liquid petroleum gas) terminals project in Bulgaria.

The proposed project involves the development and expansion of three terminals in Ruse, Sofia and Plovdiv for LPG as well as the development of new LNG business in the same locations. Specifically the proposed funding will finance:

• the company’s core LPG business line through the development and expansion of three terminals in Ruse, Sofia and Plovdiv;
• the development of a new LNG business both for wholesale trade and business to business distribution; and
• the refinancing of short term debt.

The total project cost is estimated at €31 million (US$39 million). The IFC investment will be an A loan of up to €15 million.

Bulmarket DM is the sponsor of the project. It is a regional trader and distributor of LPG, diesel and other fuels with a number of different divisions, including railway transportation, CNG retail stations, port and auto transport. LPG is the most important segment for Bulmarket, representing over half of its EBITDA.

This project will develop the LNG infrastructure in Bulgaria, which encourages greater use of the fuel, has a positive environmental impact, and supports the Bulgarian industrial base with more competitive energy costs.