Greek incumbent OTE has signed a E900m syndicated revolving ordinary bond loan facility, according to a statement.
EFG Eurobank coordinated the bond, BoA Merrill Lynch, Citi and Deutsche Bank also among the sixteen local and international banks taking…
Greek incumbent OTE has signed a E900m syndicated revolving ordinary bond loan facility, according to a statement.
EFG Eurobank coordinated the bond, BoA Merrill Lynch, Citi and Deutsche Bank also among the sixteen local and international banks taking part.
The two-year bond loan can be extended by one year and carries an interest rate of 500 bps over Euribor.
Initially, the company plans to draw E600m, in order to repay a three-year E1.5bn bond maturing on 14 February 2011. The remaining E300m will be available as an undrawn backstop line.
Reaching this agreement means that OTE will not have to ask its 30% owner, German incumbent Deutsche Telekom, for a cash injection.
OTE chairman and CEO Michael Tsamaz said: “The significant demand generated for our syndicated credit facility, exceeding E1bn, is an expression of the confidence the markets have in OTE’s ability to withstand the pressures it faces in its operating and economic environment. OTE’s continued access to external financing proves that the Group can continue to fund itself on a stand-alone basis, while at the same time shows the belief of the markets in high caliber Greek corporates”.??
OTE is owned by Deutsche Telekom (30%) and the Greek state (20%), with the remainder listed in Athens.
