Greece’s OTE has raised €500 million from international debt capital markets via a seven-year bond issuance.
In a statement it says that the issuance was strongly oversubscribed, allowing for tight pricing. Furthermore, the coupon was set at 0.875%, the lowest ever achieved, and Deutsche Telekom participated in the issuance by covering 20% of the deal size.
Commenting on the development, OTE Group chairman and CEO, Michael Tsamaz said: “This issuance is a milestone in the history of the OTE Group, as it is the lowest coupon of an OTE bond to date. It is a vote of confidence in the company and the Greek economy. It demonstrates that healthy businesses, operating in Greece, can have access to international markets with competitive terms, opening a new chapter in Greece’s entrepreneurship.”
Babis Mazarakis, OTE Group CFO, added: “The pricing levels achieved and the strong demand for the bond reflect OTE Group’ solid financial position and prospects. With the successful bond issuance we refinance part of our debt at very favorable terms and reduce substantially our financial costs. Solid economic fundamentals combined with our focus in advancing technology and innovation, will enable us to create a better world for all.”
BNP Paribas and Goldman Sachs International acted as joint bookrunners / lead managers of the bond issuance, with Alpha Bank, National Bank of Greece, Eurobank Ergasias and Piraeus Bank acting as co-managers.