OTE to raise €700 million from bond

Deutsche Telekom-backed Greek telco OTE is raising €700 million after successfully concluding the bookbuilding process for a six-year fixed-rate bond. 

OTE said the bond, which pays a coupon of 3.5% per annum, was oversubscribed, with demand exceeding €2.5 billion.

OTE said the funds would be used to achieve a further reduction in the cost of its debt.

“It is a vote of confidence of the international capital markets to both Greece and OTE. The demand for the new bonds that we will issue is an acknowledgement of our strategy as well as of the prospects of the recovering Greek economy,” said OTE Group chairman and CEO Michael Tsamaz.

OTE recently made a non-binding offer to acquire Greek pay TV operator Nova TV, owned by Forthnet for between €350-300 million on a debt and cash-free basis.