NEWS

Greek telecoms operator OTE to raise 350 mln euro with 4-year bond

Thursday, Nov 26, 2015

Greece's biggest telecoms operator OTE said on Wednesday it will raise 350 million euros ($370 million) with a new four-year bond, the first Greek company to tap international debt markets in a year.

OTE, 40 percent owned and managed by Deutsche Telekom , said after completing the bookbuilding process that the issue was twice oversubscribed and that the bond would bear an annual coupon of 4.375 percent.

"The demand for the new bond is an acknowledgement of our strategy as well as of the stabilisation and prospects of the Greek economy," Chairman and Chief Executive Officer Michael Tsamaz said in a statement.

The settlement is expected on Dec. 2.

Defying a six-year-long Greek debt crisis, OTE has raised a total of 3 billion euros from debt markets since 2011. Its last debt issue was in July 2014 when it raised 700 million euros from a 2020 bond.

OTE said it will use part of the proceeds to buy back outstanding bonds expiring May 2016 and February 2018 and finance its investment plan.

OTE has already launched a bond buyback offer which ends Nov. 27.

The company has spent 2 billion euros in Greece in the last five years and plans to invest another 1.3 billion euros on new generation networks and other infrastructure in the 2016-2019 period.

 

reuters.com

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