EBRD provides €45.75 million loan to Albanian energy company OSHEE

• EBRD to support restructuring of OSHEE’s short-term loans for electricity imports during the energy crisis
• New long-term financing will unlock OSHEE’s capital for green investments
• Loan complemented by technical assistance, including support for OSHEE’s training academy

The European Bank for Reconstruction and Development (EBRD) is extending a €45.75 million sovereign loan to Albania’s state-owned energy company, Operatori i Shperndarjes se Energjise Elektrike (OSHEE).

The loan will be used to restructure some of the €81.5 million in short-term loans that OSHEE obtained from commercial banks in late 2021, which it secured to support electricity imports during the period of surging global energy prices.

The EBRD’s support will aim to restructure the short-term loans into a more sustainable long-term facility along with existing commercial lenders, which will unlock capital for green investments, crucial to the company’s modernisation efforts. As part of the project, OSHEE has committed to investing up to €45 million over the next four years to enhance the stability of its distribution grid, facilitating the connection of new renewable sources and reducing network losses.

In addition to financial support, the project includes technical assistance aimed at supporting OSHEE’s training academy in order to enhance the expertise of its employees and improve the planning of long-term network investment.

The financing agreements were signed by EBRD Vice President Matteo Patrone, Albania’s Minister of Finance and EBRD Governor Petrit Malaj and OSHEE Administrator Enea Karakaci during Mr Patrone’s visit to Albania.

Mr Patrone said: “We are delighted to support OSHEE’s modernisation and sustainability goals. By unlocking capital for green investments, we are not only reinforcing the company’s infrastructure, but also paving the way for a more stable, resilient and sustainable energy future for the company and the citizens of Albania.”

Mr Malaj added: “This transaction offers considerable advantages. By refinancing the current short-term loans into long-term loans from the EBRD, it enables OSHEE to repay the principal in manageable instalments over an extended period, creating a smoother amortisation profile and reducing the risk of debt refinancing in the future. Furthermore, it also offers more favourable financial terms, thus leading to a reduction in the total cost of the loan.”

Mr Karakaci said: “This project is very important for OSHEE and the Albanian energy sector in general. It will enable us to continue enhancing and modernising the service we provide to our customers, and improve the reliability of that service, with the ultimate goal of providing stable energy at affordable prices.”

The EBRD is one of the leading institutional investors in Albania, having invested more than €2.2 billion in the country through 159 projects to date.