LAST UPDATE: 20.11
The demand exceeded by 2.3 times the issuance of the 7-year bond with a sustainability clause of GEK TERNA for the raising of up to 300 million euros.
The interest rate on the bonds finally reached 2.30% per annum.
More specifically, based on the corporate announcement, “Eurobank Bank SA”, “Alpha Bank SA”, “National Bank of Greece SA” and “PIRAEUS BANK”, as Coordinators Main Contractors Of Public Offering for the issuance of a Common Bond Loan, linked to a sustainability clause, and the introduction of the Bonds issued by the company “GEK TERNA SOCIETE ANONYME HOLDINGS X Real Estate” of , after the completion of the Public Offering on 10.12.2021, announce, in accordance with article 17 par. 2 of Regulation (EU) 2017/1129, that a total of 300,000 intangible common anonymous bonds of the Company with a nominal value of € 1,000 each (the ” Bonds “) resulting in the raising of funds amounting to € 300 million.
The total valid demand expressed by investors who participated in the Public Offering amounted to € 683.4 million, marking an overrun of the Issue by 2.3 times.
The offering price of the Bonds has been determined on par, ie € 1,000 per Bond. The final yield of the Bonds was set at 2.30% and the interest rate of the Bonds at 2.30% per annum.
The Bonds were distributed as follows: a) 203,000 Bonds (67.7% of the total issued Bonds) were distributed to Private Investors, and b) 97,000 Bonds (32.3% of the total issued Bonds) were distributed to Special Investors “.
It is noted that the sustainability clause of the bond of GEK TERNA provides that the Group is committed to reduce by 25% the intensity of greenhouse gas emissions by the end of 2025, a goal quite ambitious that to achieve the Group must increase within four years the total installed capacity in Renewable Sources (in offshore and offshore wind farms, photovoltaic parks and storage systems) at 3,000 MW, from 1,300 MW in operation, under construction or ready for construction in Greece, Central and Eastern Europe, currently available, carrying out an investment plan in excess of 2 billion euros.
In addition to the “sustainability clause”, the GEK TERNA bond gathered a number of other parameters that guided demand. First, the Group has a defensive portfolio of activities, a fact that was proved by what the Group’s management stated in the recent update requested by the Hellenic Capital Market Commission from all listed nine-month results.
As it was typically stated, “despite the new conditions created by the Covid-19 pandemic, the Group’s activities continue as smoothly as possible, given that its main areas of activity (RES and Concessions) show significant defensive characteristics. (…)
Specifically, in the Operational Sector of Constructions, although there were delays during the lockdown period, the construction works continue without particular problems within 2021, while there is no risk of non-compliance with conventional schedules as the relevant deadlines are extended respectively.
In the field of electricity from RES, there has been no shutdown of the facilities, while for the investments in the facilities under construction there has been no delay and the estimated time of completion and commissioning of the projects has not changed.
Finally, in the Operational Sector of Concessions, the Group is adequately protected. (…) Following the above and in accordance with the change in the results and key elements of the Group’s financial position for the third quarter of 2021, the fundamental financial figures and prospects of the Group’s financial position have not been materially affected by the the spread of Covid-19 and the evolution of the energy crisis so far “.
At the same time, GEK TERNA has now formed such a portfolio of concessions and clean energy projects, which offers it stable and predictable free cash flows with the horizon of these to increase significantly in the coming years and approach 300 million euros annually, as it will The installed capacity of the RES projects is increased and the existing flows will be added, the ones coming from the newly acquired emblematic concession projects, such as the integrated tourist complex with Casino in Elliniko, the Egnatia Odos and the airport in Kastelli.
But even in the construction activity, which is traditionally viewed with skepticism by investors due to its circularity, GEK TERNA is in an advantageous position, ready to claim the large projects that have been included in the Recovery Fund totaling 32 billion euros, already having a historically high backlog of projects amounting to 4.5 billion euros, ie almost 50% of the total backlog of the country’s major technical companies, and the security offered by the fact that a large part of the projects it builds are its own.
For example, from the total investment of 1 billion euros in the integrated tourist complex with Casino in Elliniko, the 850-900 million euros are the object of the construction arm of the Group, TERNA.
.
Source From: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
