ECONOMY

Marfin Investment Group planning to raise a further 10 billion euros

Marfin Investment Group (MIG) is at an advanced stage of negotiations for raising a further -10 billion, according to sources, with contracts about to be signed in the next few days. With the completion of the huge share capital increase of -5.2 billion just days ago – one of the biggest internationally – MIG will then find itself with an unprecedented -15 billion for investment. Marfin officials moved rapidly to raise an additional -10 billion through bank borrowing so as to secure «favorable» interest rates, but also to make the most of the exceptionally positive conjuncture for the group, given that the great success of the capital increase has become a focus of international interest. This -15 billion has sparked endless discussion, speculation and expectations in the local market, with many small or medium-sized listed companies aspiring to become a target for Marfin. Other strong, traditional business groups are worried about Marfin’s momentum, fearing that its huge cash flow could change status quo in the market. The success of the capital increase may have surprised many observers but it is only the beginning, according to MIG officials. The objective now is to use the funds effectively and satisfy shareholders expectations. Marfin President Andreas Vgenopoulos and his board say they are optimistic, stressing that the funds will be used in a geographically extensive region where the markets and economies are at an early stage of growth and where major infrastructure projects will be realized in strategic sectors such as energy, creating major business opportunities. Vgenopoulos noted in this respect that next year will be a crucial one for the group to undertake strategic investment initiatives.