Capital conversion and extraordinary shareholder meeting
An ERS subsidiary in Bosnia and Herzegovina is preparing another recapitalisation of the project company HE Bistrica as financing needs grow for the long-running hydropower development. The latest proposal would convert around €11 million of short-term loans into permanent capital. Shareholders are expected to consider the measure at an extraordinary meeting, together with amendments to the company’s founding documents.
Recent injections and prior recapitalisation rounds
The planned step follows a €7 million capital injection completed at the end of February. Earlier increases included around €2 million in 2020, €21 million in 2022 and €11 million in 2023. The repeated measures reflect ongoing funding requirements tied to bringing the project through construction after changes in ownership and development.
Contract support for AVIC and updated investment valuation
The funding is intended to support implementation of the Bistrica hydropower construction contract with China’s AVIC. The overall investment is now valued at around €170 million excluding VAT, compared with earlier construction estimates of roughly €102 million. Previous financing plans envisaged about €75 million from China’s Export-Import Bank, with ERS providing the remainder.
Ownership changes involving HE Bistrica
Hidroelektrane na Drini, part of Bosnian Serb power utility ERS, is preparing the recapitalisation of HE Bistrica. ERS sold HE Bistrica to Kaldera in 2008 for around €3.5 million. It later bought the company back in 2019 for almost €11 million.
