Bulgarian civil engineering company Evropeiski Patishta said that it is seeking the approval of its shareholders to take out a loan of up to 200 million levs ($121.3 million/102.3 million euro) from state-owned Bulgarian Development Bank.
The funds will be used to finance the construction of a section of the Mezdra-Botevgrad road, in northern Bulgaria, by a consortium led by the company, Evropeiski Patishta said in an invitation for a shareholders meeting, published earlier this week.
Evropeiski Patishta will pledge as collateral the consortium's receivables under a 222.5 million levs contract with the Road Infrastructure Agency for the construction of the road section.
Shareholders in the company will vote on the proposal at a general meeting scheduled for October 4.
The contract for building the road section was signed in September 2019 after the consortium won a public procurement procedure.
According to Bulgarian registry agency data, Evropeiski Patishta controls an 80% stake in the winning tie-up, while another local company - Vodno Stroitelstvo - Botevgrad, holds 19% interest. Slovakia's Vahostav-SK has a 1% stake in the consortium.