Tuesday June 2, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Mid-caps are eyeing the corporate bond market

By Anestis Dokas

Local companies, investors and traders are bracing for the start of operation of the new corporate bond market in the alternative market of the Athens Stock Exchange. Over 15 firms have expressed an interest in participating in the new market, whose advantages include companies being required to present a simple information note approved by the stock market’s administration and not a minimum amount in a bond issue.

Investors interested in participating in the corporate issues will be able to declare via stockbrokerage companies the amount they wish to invest through a central book-building process. The transaction will be conducted via the stock market’s electronic book of offers and will entail a reduction of both time and costs, as well as simplifying the procedure for entry to the alternative market.

The creation of this corporate bond market will serve to support small and medium-sized enterprises that are export-oriented and innovation-driven, as well as companies active in Greece with a good financial structure but unable to secure refinancing due to local banks’ inability to offer their support.

The most important feature the average investor needs to know is that the negotiable corporate bonds behave more like stocks than bonds but have a smaller variability and risk than corporate shares.

Foreign investment funds include Greek corporate bonds in a basket of dynamic enterprises of increased risk that could fetch great profits. The same category also includes companies from Italy, Spain, Portugal, the Czech Republic, Poland, Bulgaria and Romania. What hedge funds care for that the countries in which the companies have the right economic conditions to guarantee the smooth operation of listed companies for at least five years.

Sources have told Kathimerini that the biggest drawback in the international bond issues is the additional burden of 1 percent on the borrowing interest rate for major international firms, which also pertain to listed companies with a capitalization of at least 400-500 million euros.

There is a marked increase in the number of mid-caps seeking consultants in order to submit their applications for entering the new market of corporate bonds after having already been informed by their creditors that they cannot expect their credit lines to become any easier.

More large caps are also proceeding with corporate bond issues, as after the systemic banks, PPC and Intralot that recently drew liquidity from the international markets, the Mytilineos group will also have its own issue, probably this month. Kathimerini has learned that the final contacts of Evangelos Mytilineos for the international issue of a corporate bond started just after Easter. The head of the group has already had a series of contacts with foreign investment funds that have shown great interest in participating in the issue of the firm, which ranks among Greece’s the five most profitable industries.

The group will have to address this bond to the foreign markets only, as its capital requirements cannot be covered by the local banks and investment funds. Its management is carefully examining all offers to decide which funds it will choose for the issue of the bond. Mytilineos’s aim is to secure the best possible borrowing rate a Greek listed company has secured, after one of the recent PPC issues obtained a 4.75 percent rate.

ekathimerini.com , Friday May 2, 2014 (20:14)  
Draghi and Lagarde in Berlin for talks on Greece
JPMorgan loses conviction in Greek bonds as endgame approaches
Greek talks focus on deal within days as IMF payments loom
Greek contagion contained may weaken Tsipras bargaining position
Lenders decide Greek talks must intensify at Berlin meeting
European leaders and the head of the International Monetary Fund agreed to step up the intensity of talks over Greece’s fate after an extraordinary meeting in Berlin about ways to avert a de...
Greece’s creditors said to meet in Berlin to discuss plans
Top level talks were said to be taking place in Berlin on Monday evening to hammer out a proposal that would be presented to Greece as its only realistic chance of avoiding default and safeg...
Inside News
SOCCER
Unstoppable Panathinaikos makes Champions League
Panathinaikos will be Greece’s representative in the qualifiers of next season’s Champions League after beating PAOK with a 2-0 score on Sunday to clinch the top spot in the Super League pla...
BASKETBALL
Basketball referee has his car torched
One of the country’s leading basketball referees had his car torched on Saturday, a few days before the start of the Greek basketball league finals, likely to be between champion Panathinaik...
Inside Sports
COMMENTARY
Greek ultimatum is a bad idea
Should Greece’s creditors give the country an ultimatum? No. Not only is such a thing probably unnecessary, it could also play into the hands of Greek nationalists who would argue that forei...
ANALYSIS
Could a parallel currency help save Greece from drowning?
As Greece's financial plight worsens, an odd idea keeps popping up: a parallel currency alongside the euro that would circulate inside Greece and be used to pay for anything from taxes to fo...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Lenders decide Greek talks must intensify at Berlin meeting
2. Draghi and Lagarde in Berlin for talks on Greece
3. Greece’s creditors said to meet in Berlin to discuss plans
4. JPMorgan loses conviction in Greek bonds as endgame approaches
5. Greek talks focus on deal within days as IMF payments loom
6. Germany´s Gabriel says hopes for Greece deal soon
more news
Today
This Week
1. Lenders decide Greek talks must intensify at Berlin meeting
2. Greek contagion contained may weaken Tsipras bargaining position
3. EU's Oettinger says Greece deal still possible this week
4. Bundesbank official warns Greece critical but spillover limited
5. Euro pressured by Greek worries, dollar near recent peak vs yen
6. Draghi deflation relief means little with Greece unsolved
Today
This Week
1. Some 300 mln left banks on Tuesday
2. Endless confusion and worry
3. No more 'quick and dirty' fixes for Greece
4. Romantic notions meet reality
5. Target of Greek scorn shapes nation’s fate as IMF’s storm-chaser
6. ND's Bakoyannis fears capital controls over long weekend
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.