Metlen to issue new five-year ‘green’ bond
Athens-listed group Metlen is proceeding with the issue of a five-year “green” bond of 500 million euros due in 2029.
Showing signs of a reliable and consistent partner, just months before knocking on the door of the London Stock Exchange, with this move the Greek metals and energy multinational is on track for the early repayment of a previous issue due on December 1.
A few days ago, in an interview with Bloomberg TV, the chairman and CEO of Metlen, Evangelos Mytilinaios, announced the submission of an application for admission to the LSE before the end of 2024 and estimated that the whole process will be completed by the second quarter of 2025. Referring to the prospects of the company, which has doubled in size in recent years, he noted that it is looking at further growth opportunities across Europe as a whole.
Metlen announced on Monday that it has instructed BNP Paribas, Citigroup and HSBC to proceed with the issuance of a green bond, unsecured, with a nominal value of €500 million and a duration of five years.
The company, according to the announcement, intends to allocate the funds that will be raised for the full repayment of existing first-class (senior) bonds with a nominal value of €500 million with an interest rate of 2.5% and maturity in 2024. An amount corresponding to the net funds that will be drawn from the bonds will be allocated in whole or in part to the financing or refinancing of eligible green projects, as provided in the green financing program of the company. According to information, on Tuesday the bondholders of the issue expiring on December 1 will be asked whether they wish for early repayment and their inclusion in the new bond, while on Wednesday it is expected the interest rate of the new issue will likely be confirmed.
Analysts attributed Metlen’s decision to go public (in a volatile environment due to developments in the Middle East) to the company’s dynamism and strength. Besides, as they point out, the markets treat the company as if it is in investment grade, even though it is one grade below it. Fitch maintained Metlen’s BB+ credit rating with a stable outlook, noting its continued EBITDA growth despite a challenging metals and energy price environment and modest net EBITDA leverage over the rating horizon.
