Slovenske Elektrarne Seeks New Bond Issues Following Financial Recovery

Slovakia’s leading power utility, Slovenske Elektrarne AS, plans to issue more bonds after successfully entering the debt market for the first time in 14 years. This move follows the sale of €750 million (approximately $864 million) in seven-year bonds, marking a significant step for the company controlled by Czech billionaire Daniel Kretinsky.

The bond issuance is part of a strategy to optimize the company’s debt structure. According to Chief Executive Officer Branislav Strycek, the firm aims to increase the proportion of bond financing in its overall debt portfolio. “We definitely plan to return to the market in the future and increase the share of bond financing in our overall debt,” Strycek stated in a recent interview.

Significant Financial Turnaround

The bond sale and recent credit ratings signify a major turnaround for one of Central Europe’s largest power producers. For years, Slovenske Elektrarne faced financial difficulties due to cost overruns and delays in constructing the Mochovce nuclear power station. However, the company reported a record profit of €795 million in the previous year after successfully bringing a new atomic unit online.

With a stable outlook from both S&P Global Ratings and Fitch Ratings, the company has made substantial progress since it teetered on the brink of bankruptcy in 2022, when its debt surpassed €4 billion. During that crisis, Slovenske Elektrarne secured nearly €1 billion in funding to maintain operations, aided by a €370 million shareholder loan and a state agreement on tax deferrals.

Future Prospects and Strategic Goals

Earlier this year, the utility completed Slovakia’s largest corporate debt refinancing, valued at €3.6 billion, with the help of a syndicate of international banks. Although the current debt level remains at €3.4 billion, Strycek expressed confidence that the company has overcome its financial struggles.

Looking forward, the utility plans to launch its sixth reactor next year, which is expected to enhance its generating capacity. Strycek forecasted an annual profit in the range of €600 million to €700 million, even with the anticipated decline in power prices. “This confirms the company’s stability and the confidence investors have in nuclear energy,” he added, emphasizing the strategic importance of the utility within Kretinsky’s EPH Group, which gained control after acquiring Italy’s Enel SpA. The Slovak state still retains a 34% stake in the company, underscoring its importance to the national energy landscape.