Serbia’s parliament approved a EUR 300m loan agreement with eight international banks to finance infrastructure projects and gas and power subsidies, documents published on the parliament’s website showed.

The two-tranche loan is provided by Merrill Lynch International, Erste Group, Alpha Bank Luxembourg, the Bank of America, VTT Fund Limited, Raiffeisen Bank International, Vega Total Return Fund and Atlantic

Forfaitierungs and arranged by Bank of America Merrill Lynch, according to the loan agreement, which was published on the parliament’s website last week.

The first tranche is intended to finance infrastructure projects, including the construction of the Ruma-Loznica motorway and Backi Breg-Kikinda high-speed railway.

The second tranche, totalling EUR 170m, is intended to finance subsidies for the purchase of natural gas and electricity by utilities Srbijagas and Elektroprivreda Srbije (EPS).

The first tranche has a fixed interest rate of 3.1350%. The second tranche has a variable interest rate equal to the six-month EURIBOR plus 4.20%.

Source: SeeNews, Momentum