Fund Controlling Slovak Gas Transit Issues Bonds

Czech-based EP Infrastructure (EPIF) announced it has sold €70mn ($79mn) in new bonds.

EPIF, which controls Slovakia’s strategically important mainline gas transit system, said it issued the floating-rate eight-year bonds on April 8 to raise cash for general corporate purposes. The bonds were admitted to trading on the Vienna Stock Exchange.

“The issue reaffirms the interest of the international investor community in EPIF's debt securities,” EPIF said in a statement.

Energeticky a prumyslovy holding (EPH), majority owned by Czech businessman Daniel Kretinsky, holds 69% of EPIF. EPH span off its gas and heat holdings in central Europe into EPIF in 2016, and sold a 31% stake to Australia’s Macquarie Infrastructure and Real Assets. 

Amongst the assets spun off was Eustream. Accounting for a large chunk of EPIF’s income, the company is owner and operator of the transit pipeline that collects Russian gas flows at the Ukrainian border and carries them across Slovakia to Austria’s Baumgarten hub. Russia’s bid to circumvent Ukraine remains a threat, although Eustream holds a long-term 'ship-or-pay' contract with Gazprom.