Hellenic Petroleum selling debut bond
Hellenic Petroleum SA increased the size of its debut bond while Greek refrigerator equipment supplier Frigoglass SA is also planning its first note sale, as investors seeking riskier assets boost demand for securities from Europe’s most indebted nation.
Greece’s largest refiner is now looking to raise 500 million euros from four-year bonds, following an initial offering of 400 million euros, according to people familiar with the deal.
Frigoglass has hired banks to arrange investor meetings and a bond sale may follow, the company announced on Monday.
Confidence in Greece is returning after the country’s parliament passed a bill that includes firing 15,000 workers, a condition set by international lenders to unlock 2.8 billion euros of aid.
Yields on speculative-grade company bonds fell to a record 5.22 percent, according to Bank of America Merrill Lynch’s Euro High Yield Constrained Index.
“Investors are seeing plenty of reasons to move into these Greek securities, one of them being the scramble for yield,” said Suki Mann, London-based head of credit strategy at Societe Generale SA.
“The market is also choosing to see Greece getting its next aid tranche as a positive.”
Hellenic Petroleum’s bonds will yield 8 percent, according to the people, who asked not to be identified because the terms are private.
Hellenic Petroleum is the first Greek company to sell bonds since Hellenic Telecommunications Organization SA sold 700 million euros of five-year securities in January.
Frigoglass has hired Citigroup Global Markets Ltd and HSBC to arrange the investor meetings, the company said in the statement.
[Bloomberg]
