BUSINESS

Lamda issues 7-yr bond to fund Elliniko

TAGS: Business, Markets

Lamda Development is issuing a seven-year corporate bond on Wednesday to help finance its mega-project at Elliniko, with the interest expected to range between 3.4% and 3.8%.

The issue will complete the funding required for the first stage of the development at the site of the old Athens airport, fetching the construction company up to 320 million euros.

Based on the terms published in Lamda’s bulletin, the public offering begins today and will last for three days. It is made up of 320,000 bonds worth €1,000 each. A minimum of 30% will be sold to private investors, while the remainder will be distributed among institutional investors. If the amount drawn fails to reach the minimum threshold of €270 million, the issue will be canceled.

Lamda will use the cash to cover letters of guarantee related to borrowing for the Elliniko construction, the partial funding of malls at the site and the servicing of debts.

In previous weeks similar corporate bond issues produced great results, such as those by GEK Terna and by Titan Cement. The former drew €500 million at an interest of 2.75%, and the latter collected €250 million at the same interest rate.

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