2 minutesHELLENIC PETROLEUM has successfully priced the issue of a 4-year, €500m Eurobond, with an annual fixed coupon of 8%. During two days of the book building process, investors placed orders for approximately €3.5bn, a 7x oversubscription of the final issuance. The bond attracted strong demand from private investors in Greece and abroad, as well as from international institutional accounts, which accounted for almost 60% of the orders, reflecting the strong interest demonstrated during the recent Company’s road show. As a result, the transaction was upsized, while the final coupon was tightened compared to original market indications.
John Costopoulos, CEO of Hellenic Petroleum Group, commented:
“The successful completion of Hellenic Petroleum inaugural Eurobond issuance, confirms the confidence of international capital markets towards the company’s outlook and strategy. This issuance was timed after the conclusion of our 5-year investment plan and the start-up and commercial operation of the Elefsina refinery, as well as the refinancing of €1.3 billion of debt maturing at the end of 2012. The Eurobond diversifies our funding base and capital structure, extends our maturity profile and offers significant flexibility in the future funding of our operations. The overwhelming demand, the considerable oversubscription and the material participation of international investors signifies the gradual restoration of confidence towards the Greek economy and its positive prospects.”
“The successful completion of Hellenic Petroleum inaugural Eurobond issuance, confirms the confidence of international capital markets towards the company’s outlook and strategy. This issuance was timed after the conclusion of our 5-year investment plan and the start-up and commercial operation of the Elefsina refinery, as well as the refinancing of €1.3 billion of debt maturing at the end of 2012. The Eurobond diversifies our funding base and capital structure, extends our maturity profile and offers significant flexibility in the future funding of our operations. The overwhelming demand, the considerable oversubscription and the material participation of international investors signifies the gradual restoration of confidence towards the Greek economy and its positive prospects.”
The notes, issued by HELLENIC PETROLEUM FINANCE PLC, are unsecured and fully guaranteed by HELLENIC PETROLEUM SA. The settlement of the transaction is expected to take place on 10 May and the notes will be listed in the Luxembourg Stock Exchange. The proceeds of the issue will be used to refinance existing facilities and for general corporate purposes.
Alpha Bank Α.Ε., Credit Suisse Securities (Europe) Limited, Eurobank Ergasias S.A., HSBC Bank plc and NBG Securities S.A. acted as Joint Lead Managers to the issue.
HELLENIC PETROLEUM GROUP
Founded in 1998, Hellenic Petroleum is one of the leading energy groups in Southeast Europe, with activities spanning across the energy value chain and presence in 7 countries. Its shares are primarily listed on the Athens Exchange (ATHEX: ELPE), with its market capitalisation amounting to c. €2.5bn.
Further information: