Hellenic Petroleum (HELPE) is hastening to make the most of the favorable climate in international sovereign and corporate bond markets, especially as far as Greek securities are concerned, and has started the process for the issue of a five-year bond.
The oil company’s bond will mature in 2024 and the issue is expected to raise 300-500 million euros. Analysts estimate the yield could range between 2.3 and 2.5 percent.
HELPE will spend the funds it raises on the buyout of part or the whole of the bond maturing in 2021, which bears an interest rate of 4.875 percent, as well as the repayment of existing debt obligations.
The Athens-listed energy group is launching a roadshow on Tuesday to attract investors across Europe, with Credit Suisse Securities (Europe) Limited and Goldman Sachs International undertaking to lead those contacts as key bookrunners, while a supporting role has gone to Citigroup Global Markets Limited, Eurobank, Nomura International Plc, Alpha Bank, National and Piraeus.
According to the plans, if the amount raised comes to 400 million euros, some 157 million (or 39.3 percent) will go to the debt buyout proposal, while the remaining 243 million will go to repaying bank loans etc.