Orders for GEK TERNA‘s seven-year bond worth €500 million (maturing November 2, 2033) have reportedly surpassed €2 billion. The bond was issued under the company’s €1 billion Euro Medium Term Note (EMTN) programme.
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Bond issue oversubscribed four times
The issue — along with the company’s credit rating — has already been oversubscribed four times. It carries a Baa3 rating from Moody’s (stable outlook) and BBB- from S&P (stable outlook), and relates to senior unsecured notes with a fixed annual coupon rate. The notes will be listed on the Luxembourg Stock Exchange.
Pricing is expected to be finalised within the day, with settlement set for November 2. Initial Price Thoughts (IPT) place the spread at 165–170 basis points over the midswap reference rate (3.45%). Final terms will be determined once the order book closes, depending on overall investor demand.
Proceeds from the issue will be used for general corporate purposes.
Bond coordinators and underwriters
The issue is being coordinated by BNP Paribas, JP Morgan, and Mediobanca. The underwriting syndicate includes, among others, AXIA, Citigroup, Deutsche Bank, Eurobank, Goldman Sachs, HSBC, Morgan Stanley, National Bank of Greece, Piraeus Bank, and Optima Bank.
