BUSINESS

GEK Terna raises 120 mln via seven-year bond issue

NIKOS ROUSSANOGLOU

TAGS: Business, Markets

The issue of GEK Terna’s new seven-year bond this week was a profound success, with the Athens-listed group raising 120 million euros at a rate of 3.95 percent.

The bond saw such a high degree of oversubscription that the amount collected was near 250 million euros. This constitutes a clear sign of investor confidence in the long-term prospects of the Greek construction and energy group.

The company’s plans for the use of the capital drawn cover several sectors of its activity, but the emphasis is on two areas: The sector of project concessions and the servicing of the existing loans.

As GEK Terna announced in its bulletin for the bond issue, it is planning to set up a subsidiary – provided its creditor banks extend their approval – that will obtain all the holdings that the group has in concession companies, such as Nea Odos and Olympia Odos. In the future it will also include the group’s holding in the consortium to undertake the new airport at Kastelli on Crete.

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