EBRD invests €57.5 million in GEK TERNA’s bond issuance in Greece

The European Bank for Reconstruction and Development (EBRD) on Tuesday announced that it is “stepping up its efforts to help the Greek private sector cope with challenges posed by the coronavirus crisis,” with an investment of 57.5 million euros in GEK TERNA’s issuance of a seven-year €500 million bond.

The issuance from the Greek holding company is the “largest bond transaction to be listed to date on the Athens Stock Exchange and the first corporate issuance in the country since the outbreak of the coronavirus pandemic,” it said.

Proceeds will be used to refinance secured commercial loans with longer tenors and reduced financing costs, “enabling a corporate transformation that will optimize the capital structure of GEK TERNA. Further proceeds from the bond issuance will support new and/or existing investments in concession, infrastructure and energy projects,” the EBRD said.
GEK TERNA SA is the holding company for a group active in concessions, renewable energy, thermal energy and construction, incorporated in Greece and operating in Greece, central and south-eastern Europe, the USA and the Middle East.

“We are very pleased to invest in GEK TERNA’s landmark issuance on the Greek capital market. The transaction sends a strong signal that bonds are a viable source of funding for the private corporate sector. The EBRD remains active in supporting bond issuances in the country. Through our dedicated framework, we have invested almost €200 million in local and international bond issuances and successfully leveraged over €2.1 billion of listed bonds so far. Greece has a major challenge ahead of it to develop sustainable infrastructure and to transition to a green energy system. The GEK TERNA GROUP is already one of the largest renewable energy developers in the country and we’re delighted to help them become a key player in that transition,” said EBRD head of Greece and Cyprus Andreea Moraru.