Hellenic Telecommunications Organization SA (HTO), Greece’s second-biggest company, is seeking redemption with investors, albeit at a price.
The Athens-based phone company, 40 percent owned by Deutsche Telekom AG (DTE), presented on Jan. 30 its highest interest rate to attract buyers to the lowest-rated offering from a southern European issuer in at least seven years. The company, known as OTE, sold 700 million euros ($948 million) of five-year bonds paying 7.875 percent, hailing the transaction as “a vote of confidence”.
“It’s a clear positive, and a good sign for other Greek companies,” said Vassilis Kararizos, deputy director of equities at Proton Bank (PRO) in Athens. “But the yield shows that even as euro exit concerns have fallen, there’s still plenty of work and risks ahead for both Greece and the corporates.”