Montenegro: First EIB loan for education projects
– The EUR 18m loan will finance the construction and renovation of education facilities and kindergartens in the capital Podgorica and in nine municipalities across the country
– The financing operation will focus on increasing the country’s schooling capacity by creating an additional 2,070 places
– Strong employment impact with the creation of around 530 new full-time jobs, mostly for teachers
– This first EIB project in the education sector in Montenegro will also benefit from an Economic Resilience Initiative (ERI) grant
The European Investment Bank (EIB) announced its first investment in an education project in Montenegro, by contributing to the upgrade of the school system in the country. This is part of the Bank’s ongoing support for education in the Western Balkans region.
The total investment amount is estimated at over EUR 40m, in support of which the bank of the European Union will provide a EUR 18m loan. The financing will partly fund the construction of three primary schools and one new secondary school, and the renovation of three kindergartens and 10 vocational schools.
The investment also includes the provision of new information and communications technology equipment, specific equipment for vocational schools and new school furniture. The investments will take place in the capital of Montenegro, Podgorica, and in nine municipalities across the country (Kotor, Berane, Plav, Bijelo Polje, Bar, Budva, Cetinje, Herceg Novi and Rozaje).
The project will increase the country’s schooling infrastructure capacity by creating an additional 2,070 places. This, together with existing available capacity, will help to alleviate overcrowding in some primary schools and increase children’s access to pre-primary level education.
The project contributes to the objectives of the Economic Resilience Initiative and will also benefit from an ERI grant to provide technical assistance regarding the procurement and implementation of the project. The project will not only scale up investments in education facilities, it will also provide better learning tools to upskill young students, thereby improving youth employability.
In addition to supporting the development of education in the country, the investment will also have a significant employment impact with the creation of around 530 new full-time jobs, mostly for teachers.
Regarding the EIB’s support for education in the Western Balkans region, in recent years the EU bank has financed the School Modernisation Programme (EUR 50m) and the Public Sector Research and Development project (EUR 200m), both in Serbia.
The loan agreement was signed today in Podgorica by the EIB’s Head of Division for Slovenia, Croatia and Western Balkans, Matteo Rivellini, and the Minister of Finance Darko Radunović in the presence of the Minister of Education, Damir Šehović and of the Head of Cooperation at EU Delegation Hermann Spitz.
“I am really pleased with this operation in the education sector: we firmly believe that investing in people is the best way to support human empowerment, growth and development across the whole Western Balkans region and now also in Montenegro”, noted Dario Scannapieco, EIB Vice-President responsible for operations in Italy, Malta and the Western Balkans. “We appreciate the efforts made by the Montenegrin Government to invest in a sector that is crucial for the future. These projects have a long-lasting return which will substantially benefit the country’s competitiveness.”
“The Montenegrin Education Improvement Programme is a continuation of the successful long-term cooperation between the European Investment Bank and the State of Montenegro; we strongly believe that the Project will greatly contribute to the improvement of education in Montenegro and, consequently, to the further improvement of cooperation between Montenegro and the EIB”, said the Minister of Finance Darko Radunović.
“The EUR 18m loan signed today between the Government of Montenegro and the EIB facilitates the development of infrastructure predominantly in Podgorica but also in some other municipalities. As a result, by 2023 over 8,000 students will learn in better conditions and more than 2,000 new students will be accommodated in schools. This loan perfectly complements the assistance provided by the EU through the joint EU-Montenegro Programme for Employment, Education and Social Welfare, under which a grant of more than EUR 2.7m has been allocated for the education sector alone”, said Hermann Spitz, Head of the Cooperation Section at the EU Delegation to Montenegro.
Dynagas LNG secures fresh loan $675m
George Procopiou-led Dynagas LNG Partners has secured a syndicated loan of $675m from a group of international banks. The credit facility will be secured by mortgages on the partnership’s entire fleet of six LNG carriers.
The loan, together with extra cash, will be utilised to repay the all partnership’s existing debt of $720m in total.
The new credit facility is repayable over five years in 20 consecutive quarterly payments based on a 14-year amortisation profile.
Dynagas LNG Partners expects to complete the financing before end of September.
“We are pleased to enter into this transformative re-financing. The credit facility provides the partnership with reduced cost of debt relative to the existing one and a simplified debt structure with a clear and viable path towards deleveraging through a significant increase in debt amortization,” said Tony Lauritzen, CEO of Dynagas LNG Partners.
“The partnership has in place long-term charter contracts with international energy companies, generating cash flows that will be channeled towards the amortization requirements of the credit facility, building equity value over time. As a result of this global refinancing and broader strategic realignment, the partnership is better positioned for future growth initiatives as global LNG markets continue their robust development,” Lauritzen added.
Okeanis Eco Tankers Secures Loan to Finance Scrubbers
Greek shipping company Okeanis Eco Tankers, owned by the Alafouzos family, has secured a financial package to fund its scrubber retrofit project.
The loan commitment was agreed with BNP Paribas in the amount of USD 11 million.
The funds are available immediately, and the company expects to draw on it shortly to partly finance the capital expenditure required to retrofit scrubbers on six of its vessels, including two Aframax/LR2 tankers, as well as four Suezmaxes.
Okeanis Eco Tankers informed that the facility carries an interest rate over Libor of 2.00%, a 5-year tenor, and a 4-year repayment profile beginning one year after drawdown.
Okeanis Eco Tankers started trading on the Oslo Stock Exchange in July 2018, raising USD 100 million in its initial public offering.
In May 2019, the company completed a private placement and raised around USD 15 million to be used for working capital and general corporate purposes. Glafki Marine Corp. (Glafki), the Okeanis Eco Tankers’ majority shareholder, underwrote the private placement in its entirety.