BUSINESS

Attica Group to tap markets for 175 mln euros

TAGS: Business

Athens-listed Attica Group is expected to open the book for a new bond issue on July 17 or 22, depending on how fast the Capital Market Commission issues the necessary approvals. This will make Attica the first enterprise to tap the favorable climate in capital markets concerning Greece and the drop of Greek bond yields to historic lows.

The bond issue, which will have corporate assets (ships) as collateral, had been announced before Easter in April but the coastal shipping group’s management chose to wait until after the elections. The group’s physical assets (mainly ferries) added up to 690.36 million euros in end-2018.

The bond will amount up to 75 million euros and Attica’s management aims at an interest rate of 3 percent, or even lower, thereby achieving a reduction of the group’s average cost of borrowing.

Oversubscription is more or less certain, given the interest already seen in banks and stockbrokerage companies by the wider public.

Attica, which owns and operates Blue Star Ferries, Superfast Ferries and Hellenic Seaways, will use the funds drawn to refinance its existing loans at a lower rate, while another part of the funds will go to its business objectives.

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