Bulgarian state-owned railway company BDZ said it has reached an agreement with its creditor banks on its second bond loan, as a result of which the sale of company assets has been terminated.
The outstanding obligations to the financial institutions will be covered through reimbursable state aid, BDZ said in a statement late on Monday.
In 2007, BDZ successfully placed a 10-year 120 million euro bond issue, consisting of 120,000 bonds with a nominal vlaue of 1,000 euro each. The issue carries a floating rate of the three-month EURIBOR plus a premium of 3.5% on an annual basis.
In February, Bulgaria's government said it decided to extend financing in the amount of 30.95 million levs ($19.5 million/15.8 million euro) to BDZ to help the company repay outstanding debt on its bond issue.