The Athens-listed GEK Terna group is planning to issue a new bond next month to raise 300 million euros. This new paper is expected to satisfy the need for capital stemming from the new concession contracts the group will sign in the coming months, such as the Egnatia Odos highway.
The group’s previous bond issue was in July 2020, amounting to €500 million, and was aimed mainly at funding works at the new airport for Iraklio at Kastelli on Crete. The interest rate at the time had come to 2.75%, with the company attracting offers of €700 million.
Based on a recent analysis by the group, in 2022 an 2023 GEK Terna will require capital of €550 million to finance its investment program. That concerns €200 million for 2022 and €350 for 2023, which will mostly go toward projects such as the Egnatia concession, the hotel and casino complex at the Elliniko development, and the construction of a new natural gas-fired power unit at Komotini. These projects are seen bringing considerable revenues to the group, which expects to be self-financed after the maturing of major projects, such as Kastelli and Elliniko, from 2025.