Bond offerings reached €1.2 billion for the seven-year bond through which GEK TERNA is raising €500 million, achieving 2.4 times oversubscription due to strong investor interest, according to powergame.gr citing reliable sources. Notably, this amount represents the largest sum ever raised in a corporate bond issuance since the bond market began operations, according to the same source.
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GEK TERNA: Strong demand for the bond offering
Specifically, demand from retail investors exceeded the bond’s value very early on, while it was covered 2.4 times the requested amount due to successive registrations from institutional investors. Regarding the final yield, it is estimated to be set at 3.2%, which is at the lower end of the initially given range (3.2% – 3.5%). According to the Game Over column of powergame.gr and what was written on Wednesday (24/09), the investment community enthusiastically welcomed yesterday (Tuesday) the public offering for GEK TERNA’s seven-year bond worth €500 million. From the first day, strong demand was recorded – mainly from the so-called retail segment – savers and private investors seeking returns – which approaches the value of GEK TERNA’s issuance. The public offering will last until Thursday, September 25, with interest now focusing on how many times the requested amount will be oversubscribed. The capital will be utilized to finance critical infrastructure and energy projects, as well as to reduce the group’s existing debt.
