BUSINESS

Mytilineos bond issue raises 300 mln euros

Evangelos Mytilineos, owner of the Mytilineos group.

TAGS: Business

Greek industrial group Mytilineos raised 300 million euros through a five-year bond on Friday, with the issue oversubscribed more than twice, the company said.

The success of the bond, which is the second major Greek corporate issue this year, signals improving investor confidence after Greece concluded a bailout review and secured a 8.5-billion-euro loan last week, analysts said. The book building started on Wednesday and closed on Friday.

The yield was 3.1 percent, close to the low end of the 3 to 3.5 percent guidance range. National Bank and Eurobank were the lead managers.

“After the completion of the second bailout review, Greek assets are derisking across the board,” Eurobank Equities analyst Nick Koskoletos said.

“Mytilineos is capitalizing on its fundamentals and export-oriented profile via its aluminium business to tap the market in what is the largest bond issue to be listed on the Athens bourse’s fixed-income market,” he said.

Expectations that Greece’s economy will recover from the second half of the year and the absence of a planned corporate bond issue in the near future also helped, Beta Securities asset manager Constantinos Boukas said.

[Reuters]

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