Mytilineos enters Albanian power market, signs EUR 21 million contract with OST

Greek company Mytilineos has signed a EUR 21 million contract for the development of the transmission network with Albania’s transmission system operator OST.

Through its Sustainable Engineering Solutions Business Unit (SES BU), Mytilineos Group reached a deal with Operatori i Sistemit të Transmetimit (OST) for the development of the 400 kV power network in Albania.

The project includes the construction of the substation Elbasan 3 and the reinforcement of substation Fier

The project includes the construction of the substation Elbasan 3 and the upgrade and expansion of substation Fier. Elbasan 3 will expand the existing 400/220/30 kV substation Elbasan 2 with a new switchyard on a 400kV for the connection to units Tirana 2, Zemblak, and Fier, and the substations in North Macedonia, while modification will take place at the existing 400/220/30 kV substation Elbasan 2, Mytilineos said.

In substation Fier, the existing 220 kV switchyard will be extended with new bays and a 400/220/35kV transformer, the company added.

By developing the 400 kV network in the southern part of Albania, the project will enhance the interconnections with the electricity networks of the neighboring countries

The project is co-financed by Germany through KfW and by the European Union within the Western Balkans Investment Framework.

By developing the 400 kV network in the southern part of Albania, the project will contribute to the energy transmission system by enhancing the interconnections with the electricity networks of the neighboring countries and it will enable conditions for power trade, the company said.

According to the industrial and energy conglomerate, its first energy project in Albania heralds a new era in the broad Balkan region through its subsidiary SES BU.

The project is scheduled to be completed within 24 months, in addition to 12 months for the warranty period.

The company to offer EUR 500 million in green bonds

Mytilineos has also announced an offering of EUR 500 million green senior unsecured notes with a 5.5-year tenor.

The company has mandated BNP Paribas, Citigroup, and HSBC as global coordinators and joint bookrunners to arrange on its behalf a series of virtual fixed income investor meetings in Europe commencing April 19.

An amount equivalent to the net proceeds from the notes will be used to finance or refinance, in whole or in part, eligible green projects in accordance with the company’s Green Bond Framework, the company said.