Slovenske Elektrarne Fuels Turnaround with €750M Green Bond Push

Slovakia's dominant power utility, Slovenske Elektrarne AS, is preparing to return to the bond market in a major push to stabilize and optimize its financing structure. The company, controlled by Czech billionaire Daniel Kretinsky, has raised €750 million ($864 million) in a seven-year green bond issue, marking its first debt offering in 14 years according to Bloomberg. The move comes as the firm works to reduce debt-service costs and build on a recent credit ratings upgrade to BBB with a stable outlook from both S&P Global Ratings and Fitch according to Bloomberg.

The bond sale is seen as a key milestone in the utility's turnaround after years of financial struggles tied to cost overruns at the Mochovce nuclear power station. The company posted a record €795 million profit last year after commissioning a new atomic unit, signaling a recovery from a 2022 near-bankruptcy scenario when its debt exceeded €4 billion according to Bloomberg. Slovenske Elektrarne remains a key asset within Kretinsky's EPH Group, which acquired the Slovak utility after buying out Italy's Enel SpA according to Bloomberg.

Chief Executive Officer Branislav Strycek has made it clear that the company plans to continue issuing bonds in the future. "We definitely plan to return to the market and increase the share of bond financing in our overall debt," he said in an interview according to Bloomberg.

Strategic Moves and Debt Refinancing

Slovenske Elektrarne's recent financial improvements have been supported by a €3.6 billion refinancing deal with international banks and a €370 million shareholder loan, helping to ease the pressure of its earlier €4 billion debt burden according to Bloomberg. While the utility still carries €3.4 billion in debt, Strycek said the company has moved past its financial struggles and is focused on long-term stability according to Bloomberg.

The CEO also highlighted plans for the next phase of nuclear expansion, with a sixth reactor at Mochovce expected to launch next year. This should help offset the anticipated decline in power prices and potentially boost annual profits to between €600 million and €700 million according to Bloomberg. The company remains committed to nuclear energy as a cornerstone of its strategy, given its low-cost production and strong performance in central Europe's electricity markets according to Reuters.

Kretinsky's Expanding Energy Empire and TotalEnergies Deal

Daniel Kretinsky's broader energy holdings have also seen a significant shift with the recent joint venture between Energeticky a Prumyslovy Holding and TotalEnergies SE. The deal, valued at €5.1 billion, gives TotalEnergies a 50% stake in EPH's power assets, including gas and biomass power stations and battery projects across Italy, the UK, Ireland, the Netherlands, and France according to Bloomberg. In exchange, EPH will hold a 4.1% stake in the French oil major, marking a strategic partnership aimed at expanding TotalEnergies' power generation capabilities according to Morningstar.

TotalEnergies CEO Patrick Pouyanne described the partnership as a way to "give a new dimension to our trading business" and help the company achieve its target of producing 100–120 terawatt-hours of electricity by 2030 according to Reuters. The acquisition also allows TotalEnergies to reduce its capital expenditure by $1 billion annually between 2026 and 2030 and accelerate cash flow generation from its integrated power segment according to Morningstar. The deal is expected to close by mid-2026, pending regulatory approvals according to Reuters.

Kretinsky has been a key figure in reshaping Europe's energy landscape, acquiring gas-fired and coal assets from utilities seeking to meet green targets. This partnership with TotalEnergies reinforces his strategy of becoming a long-term shareholder in green energy majors while expanding his generation portfolio according to Reuters. The joint venture adds over 14 gigawatts of gross capacity, including gas and biomass power plants and battery systems, positioning it as a leader in flexible power generation across Western Europe according to Morningstar.

Market Reactions and Investor Confidence

The green bond issuance by Slovenske Elektrarne and the broader strategic moves by Kretinsky's energy group have drawn positive market reactions. Investors are viewing the BBB ratings from S&P and Fitch as a sign of improved creditworthiness and financial discipline according to Bloomberg. Fitch cited the company's low-cost nuclear and hydroelectric production and its strong profitability as key rating drivers, noting the utility's role as a low-emission power producer in a region where electricity prices reflect higher production costs from gas and coal according to Reuters.

The deal with TotalEnergies has also been praised by analysts as a win for both parties. RBC Capital Markets' Biraj Borkhataria noted that the agreement de-risks a significant portion of TotalEnergies' growth plans and aligns with its goal of becoming a major integrated electricity player in Europe according to Morningstar. The move is expected to boost Total's power trading business and enhance its flexibility in meeting demand fluctuations in Europe's energy markets according to Reuters.

With its financials on a firmer footing and strategic partnerships in place, Slovenske Elektrarne and Kretinsky's broader energy assets are well-positioned to benefit from the ongoing energy transition. The next phase of nuclear expansion and continued bond issuance could further solidify the company's role as a key player in central Europe's power sector.