OTE has announced that it is proceeding with the raising of funds of €150 million through a loan agreement with the EBRD. According to the relevant announcement, this loan agreement is the first to be implemented in the country in the field of digital investments, with the use of loan funds within the framework of the National Recovery and Resilience Plan “Greece 2.0” with funding from the European Union – NextGenerationEU. These resources will contribute to the development of a Fiber to the Home (FTTH) network in the Greek region by OTE, as part of its investment plan of more than €3 billion until 2027.
The agreement was signed at the OTE Group Headquarters, between Dirk Werner (Director, Head of Telecommunications, Media and Technology – EBRD) and the President and CEO of the OTE Group, Mr. Michalis Chamaz, in the presence of the Minister of Finance, Mr. Christos Staikouras, the Deputy Minister of Finance Mr. Theodore Skylakakis and the Commander of the Special Coordination Service of the Recovery Fund Mr. Nikos Mantzoufas.
The resources of the Hellenic Recovery and Resilience Mechanism will ensure OTE additional liquidity for the implementation of part of its plan to develop a fiber-to-the-home network. Specifically, they will contribute to approximately 371 thousand households and businesses in 12 regions of the country (Achaia, Halkidiki, Corfu, Cyclades, Dodecanese, Evros, Larissa, Lefkada, Rethymnon, Rodopi, Trikala and Xanthi) gaining access to OTE’s FTTH network by in 2027, contributing decisively to the digital development of the Greek region. Optical fiber networks are more energy efficient and therefore the expansion of FTTH contributes significantly to the reduction of greenhouse gas emissions and the green transition of the Greek economy.
On the occasion of the signing of the loan agreement, the Minister of Finance, Mr. Christos Staikouras, said: “The loan agreement signed today, between OTE and the European Bank for Reconstruction and Development (EBRD), confirms the catalytic role of the National Recovery Plan and Resilience “Greece 2.0” in the implementation of investments for the digital transition, which will have tangible results in improving the daily life of citizens and a significant contribution to the promotion of regional development and innovation. Through this specific investment, which concerns the development of an optical fiber network in 12 regions from all corners of the Greek region in the coming years, the digital infrastructures are strengthened and the competitiveness and investment attractiveness of our country is boosted. As a Government, despite the adverse conditions created by successive and overlapping crises, we will continue to work methodically and efficiently, in cooperation with financial institutions and businesses, for the optimal utilization of the Recovery Fund’s resources and the achievement of high, sustainable and socially just growth “.
For his part, the Deputy Minister of Finance Mr. Thodoros Skylakakis noted: “Through the National Recovery and Resilience Plan “Greece 2.0” an important investment for the digital development of the Greek region is on track to be implemented. Of the 150 million euros of the loan agreement signed today between OTE and the European Bank for Reconstruction and Development (EBRD), the “lion’s share”, about 94 million euros, is from the Recovery Fund and the remaining 56 million. euros come from the EBRD. The benefit from the implementation of the investment is great, since approximately 371 thousand households and businesses in 12 regions of the country will gradually, over the next few years, gain access to the optical fiber network (FTTH) of OTE. “Greece 2.0″ is in full development and contributes with the loan program and the subsidies it provides, but also with the implementation of reforms, to the investment growth achieved by our country, despite the difficulties created by external factors”.
“The loan arm of the Recovery Fund has started dynamically. An innovative program to support important private investments has been methodically set up and today’s signature demonstrates its value,” said the Commander of the Special Coordination Service of the Recovery Fund, Mr. Nikos Mantzoufas.
Mr. Dirk Werner, EBRD Telecommunications, Media and Technology Director, underlined the importance of the agreement for the Bank: “I am excited to sign such an important agreement with OTE, which is our long-term partner. Our investment will help the digital and green transition of the Greek economy, while it will bring reliable and energy-efficient broadband infrastructure to areas outside major cities”.
Ms. Andreea Moraru, EBRD Regional Head of Greece & Cyprus added: “At the EBRD we are proud to contribute to the implementation of the ambitious Greek Recovery and Resilience plan and work with our partners in the European Union and the Ministry of Finance to create a better future for Greek citizens”.
For his part, the President and CEO of OTE Group, Mr. Michalis Chamaz, noted: “The financing from the European Bank for Reconstruction and Development is an important milestone. It is the first in the country in the field of digital investments, with use of loan funds from the Hellenic Recovery and Resilience Mechanism. It reflects the confidence in the company and its capabilities. At the same time, it contributes significantly to the expansion of the OTE Group’s fiber optic network outside the major urban centers and by extension to regional development, to the digital transformation of country and in the green transition of the economy. Equal access to the digital infrastructure of the future is essential for a better world for all.”
The loan has a duration of eight years with repayment at maturity and will finance an investment project totaling €187.5 million. Of the €150 million that OTE will receive, €93.75 million is financed by the Recovery and Resilience Fund of of the European Union, which are channeled through the Greek Ministry of Finance, while €56.25 million is financed by the EBRD. The €37.5 million will be covered by OTE’s own funds. The total interest rate is expected to vary between 1.3% and 1.7% per annum, depending on conditions in the capital markets a few days before the disbursement, when it will be finalized.
Source: 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.
