ECONOMY

Intralot bonds post record gains as Greece concedes to demands

Intralot bonds post record gains as Greece concedes to demands

Bonds of Intralot SA, one of a handful of Greek corporate securities investors are willing to hold, posted their biggest two-day jump on record as Greece reached an accord with creditors over reforms needed to start bailout talks.

The gaming system developer’s 275.6 million euros ($305 million) of 9.75 percent bonds rose 5.3 percent to 103.5 cents on the euro, the biggest increase for the period since the notes were issued in 2013, according to data compiled by Bloomberg. Its 2021 notes also had the biggest two-day climb.

The bonds climbed as Greece’s Prime Minister Alexis Tsipras yielded to creditor austerity demands during talks with European leaders aimed at keeping the nation in the euro. TwentyFour Asset Management and Pictet Asset Management confirmed they hold Intralot’s debt.

“Intralot is the only Greek company in our portfolio,” Eoin Walsh, a founding partner at London-based TwentyFour, said. “Most of its operations are outside Greece, so that’s how we got comfortable with the name.”

The Athens-based company had more than 388 million euros of cash in international bank accounts at the end of March and got less than 2 percent of first-quarter revenue from its Greek business, a company spokesperson said in e-mailed comments last week. That made it “largely unaffected” by the debt crisis, the official said.

Intralot’s 217.9 million euros of 6 percent notes rose 8.2 percent to 90.2 cents for the same two-day period after reaching a record low 80.8 cents on July 8, the data show.

[Bloomberg]

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