By Eleni Botas
The Public Offer of the 300 million euro Bond of GEK TERNA starts today and will last until Friday, December 10.
The new bond issue, which comes in just 18 months from the previous one (July 2018) reflects the ever-increasing investment plan of the GEK TERNA Group, which participates in the implementation of investments of 6.5 billion euros.
These include large projects, such as the casino at Elliniko, the Egnatia Odos and the Kastelli airport, which represent the portfolio of the group’s diversified activity.
Through the raised funds, GEK TERNA intends to partially finance the new 877 MW power plant with natural gas fuel (CCGT) in Komotini.
In the construction sector, GEK TERNA is proceeding with the issuance of the bond, based on the historically high execution of projects amounting to 4.5 billion euros, which is 50% of the total execution of the country’s major construction projects.
Given the two previous successful bond issues (2018: 120 million, 2020: 500 million), the Group is oriented towards an attractive yield range of 2.30-2.70% and reflects the confidence of the investment community. It is worth noting that in the 2018 version the yield range was 3.95%, while in the July 2020 version at 2.75%.
As reported in the market, the characteristic of this bond is related to the fact that for the first time in the Greek market a bond with a sustainability clause is issued. This means that the terms are binding on the issuer itself and not just the nature of the investments in which it will channel the funds it will raise as it does, for example with green bonds. In the case of GEK TERNA, the sustainability clause stipulates that the group is committed to reducing greenhouse gas (CO2) emissions by 25% by the end of 2025. This goal will be achieved based on the group’s forecast for an increase in total installed capacity (in offshore and offshore wind farms, photovoltaic parks and storage systems) at 3,000 MW until the end of the bond loan.
It should be noted that during the first nine months of this year, the consolidated sales of the GEK TERNA group amounted to 700.7 million euros, increased by 6.4% from 658.5 million euros in the corresponding period last year. Operating profitability of EBITDA also increased by 17%, as it amounted to 212.7 million euros, from 181.8 million euros, while net profits amounted to 4.9 million euros, from profits of 3.9 million euros. the corresponding period last year.
In the construction sector, turnover amounted to 399 million euros compared to 391 million euros, while operating profit jumped to 38.4 million euros, from 17 million euros in the first nine months of last year.
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Source From: Capital
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