Dentons’ Banking and Finance team in Bratislava has advised a club of banks led by Tatra banka, and including UniCredit Bank Czech Republic and Slovakia, Slovenská sporiteľňa and Československá obchodní banka on a €160 million syndicated loan to MH Teplárenský holding. The loan represents the first ESG-linked syndicated financing of a state-owned company on the Slovak market.

The loan will replace and significantly optimize the existing financings of MH Teplárenský holding, which was created by the merger of six state heating companies in Bratislava, Trnava, Zvolen, Martin, Žilina and Košice in May 2022. At the same time, it will contribute to the transformation of state heating plants towards more ecological production. MH Teplárenský holding has set out a number of environmental goals, the fulfilment of which will enable it to obtain more favorable interest rates on the bank financing. The new ecological goals are mainly aimed at reducing CO2 emissions in the production of heat and hot water.

Counsel Petra Štrbová led the team, supported by partner Patricia Gossányiová and associate Dávid Stanek.

“We are grateful to Tatra banka for their continuing trust and for the opportunity to represent them and other lenders of the club in this first-of-its-kind transaction. The complexity of the structure, the fact that the syndicated financing was provided to a state-owned company, and the environmental element made the deal very special and unique,” commented Petra Štrbová.

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