Greece’s Marfin Investment Group is to raise up to 660 million euros with a convertible bond issue and plans to invest almost two thirds of the total in opportunities in Greece and South Eastern Europe.
Despite its economic woes, private equity firms are taking another look at Greece, attracted by the cheap price tags on offer for some companies.
Convertible bonds, which pay a fixed coupon but convert into shares at an agreed price, have been in demand this year with investors attracted by the higher returns on offer compared with yields on conventional bonds.
Marfin said in a statement on Friday its new convertible, tradeable on the Athens Exchange, will be split into two tranches, with the first paying a 7 percent coupon for six years and the second 6.3 percent for seven years.
The first tranche, of up to 408 million euros, will be used to invest in new opportunities and to grow Marfin’s existing holdings in the food and beverages, healthcare and transportation and shipping sectors, the firm said. The second will primarily target existing bondholders to refinance Marfin’s outstanding convertible bond loan at more attractive terms.