Czech electricity company CEZ AS (BAACEZ.PR) has requested proposals from lending banks to refinance an existing EUR550 million loan that is due to mature in January 2010, people familiar with the situation said Monday.
Around a dozen banks have been invited to tender for the deal by providing details of the amount each bank is willing to lend and at what price, one of the people said.
The original financing was first agreed for an amount of EUR600 million in January 2008 as a one-year term loan, according to data provider Dealogic.
The funds backed CEZ's acquisition of a 7.4% stake in Hungarian oil and gas company MOL Nyrt. (MOL.BU) in December 2007, the people said.
The original loan was refinanced and extended for a further year in January 2009 for EUR550 million, one of the people said.
ING Groep NV, Intesa SanPaolo SpA and CSOB, part of the KBC group, arranged this facility, this person added.