28 June 2017

The Athens Stock Exchange welcomes MYTILINEOS

Corporate Bond Listing

 

The Athens Stock Exchange welcomed today the MYTILINEOS company, in the context of the listing and admission to trading of its Corporate Bond.

Evangelos Mytilineos, the company's  Chairman & CEO, rang the traditional bell during the opening bell ceremony of the Athens Stock Exchange.

Sokratis Lazaridis, CEO of the Athens Exchange Group, welcomed the company by making the following statement: "This issue confirms the conviction that the Greek market can attract investors and cover issues suitably structured by the companies and properly formulated by the underwriters. The Mytilineos company is a prime example, at European level, of a company that took advantage of the first market in Europe designed especially for small and medium-sized enterprises - the Parallel Market - effectively cultivating its potential within the framework of the capital market, managing over a twenty year period to grow into one of the largest companies listed on the Greek Stock Exchange".

In conclusion, he underlined that: "The European financing environment is undergoing a transition. A new balance is sought between bank lending and development financing by the stock markets. This transformation entails a change in the financing model, and of course, in addition to everything else, we would like to express our unflagging support to all participants that foster, whatever the short-term cost, this change in culture which the European economy urgently needs". He then went on to congratulate the executives of the Underwriters for their key contribution, since the contribution of investment banking is important for the effective operation of the markets. He further noted the support that the EBRD (European Bank for Reconstruction and Development) has provided to the bond market.

The company's Chairman & CEO, Mr. Evangelos Mytilineos, thanked everyone who participated in the bond issue project, and stated: "We are anticipating the growth of this market as well, in the Athens Stock Exchange. We are hoping to enhance it with new issues in the future. We believe that corporate bonds are the right tool that will enable the financing of the development needs of companies through the stock markets.

Bank lending, as well as the entire package of services provided by the banking sector, are going through a transition phase. Advice, support of short-term liquidity needs and use of specialised financial instruments, depending on each customer's needs, is what banks are asked to provide nowadays. Long-term investment financing must be sought in capital markets from now on".

Mr. Mytilineos then urged other Greek companies, which are in need of capital to support their investments and growth, to enter the market.

He closed by noting that: "We borrowed from both private individuals and institutional investors at a 3.1% interest rate. This competitive financing cost shows the way also for the recovery of the economy, with companies conducting business within a market environment. A market that can host both large and smaller companies, or even start-ups. And in any case, there is no alternative. Prosperity and progress are the only choice for our companies".

Haralambos Gotsis, Chairman of the Hellenic Capital Market Commission, stated in relation to the listing of the corporate bond: "Welcoming the largest corporate bond ever issued in the new Greek corporate bond market at the Athens Stock Exchange, is a landmark financial event for our country's economy. The market is gradually growing to a size that primarily offers the possibility to robust business to raise significant amounts of capital directly from investors, whereas the secondary market is also formed, where one can seek liquidity in order to find a way out of a difficult position.

Our goal appears to be gradually achieved, since other companies are starting to express their interest in proceeding with issues.

The Hellenic Capital Market Commission will thus continue to make every possible effort to help this market become a substantial, alternative-to-banks, source for raising the capital which our country needs".

Mr. Panagiotis Drakos, Chairman of the Union of Listed Companies (ENEISET), during the event noted that: "This is an important day. Not only due to the highly successful subscription of the corporate bond issue, but mainly because it was clearly demonstrated that a company can succeed whatever the general circumstances prevailing around it. This means that private initiative is of great value, and may bring about even more results despite the difficulties encountered on the way".

ownload the Press Release

 

Highlights of the event
Opening Bell Ceremony
Photos of the event
Haralambos Gotsis, Chairman of the Hellenic Capital Market Commission Evangelos Mytilineos, Chairman & CEO of the company

 

Statements by journalists
George Alexakis, Journalist Reporter.gr		Anestis Dokas, Journalist Daily

 

Coordinators and Bookrunners were the National Bank of Greece and Eurobank Ergasias. Lead Underwriters were Alpha Bank and Piraeus Bank. Underwriters were Euroxx Securities , the Investment Bank of Greece and Pantelakis Securities. Advisor was NBG Securities

A total of 300,000 common, bearer bonds of the company with a nominal value of 1,000 each have  been  allocated  and €300,000,000 has been raised.

. These are 5-year bonds with a 3.10% interest rate.

Total demand and the number of investors that participated in the Public Offer was €740,837,000 (subscribed at  2.47 times) and 10,038 respectively.

The Bonds were allocated as follows: a) 185,000 bonds (61.67% of the total) to Private Investors, satisfying 45.14% of the demand and b) 115,000 bonds (38.33% of the total) to Institutional Investors satisfying 36.63% of the demand. Also, from the 15,000 Bonds allocated to Institutions Investors, the Underwriters received for their own account 35,000 Bonds.

The process was carried out through the Electronic Book Building service of the Athens Stock Exchange.

More information about the issue can be found on the Athens Stock Exchange website at this link.

The MYTILINEOS Group is one of Greece's leading industrial companies, with international activities in the sectors of Engineering - Procurement - Construction Projects, Metallurgy & Mining and Energy.

METKA represents the construction/energy branch of the Group. It is a global player in the construction of specialised large-scale energy projects, focused on the international markets, and also an industrial production company with extensive know-how and presence in the Energy and Infrastructures sectors.

The metallurgy/mining sector is represented by ALUMINIUM OF GREECE, the largest vertically integrated aluminium and alumina producer in the EU and one of the most robustly growing industrial businesses in Greece.

The Group established its position in the Energy sector through PROTERGIA, the largest independent electricity producer in Greece, with an energy capacity portfolio exceeding 1,200 MW. PROTERGIA is also active in the supply of electric power, aiming to offer electricity to businesses, professionals and households.

In 2016, the MYTILINEOS  proceeded with the strategic merger of all Group subsidiaries under a single umbrella, in a move that demonstrates its continuous efforts for business progress, evolution and growth. Today, the Group stands out for its unique and modern employment model, its active social profile, the innovative mechanisms it adopts for business growth, its strategic investments in leading-edge solutions to modernise operations and the successful consolidation of its presence in the global markets.

 

The Athens Stock Exchange since its establishment in 1876, consistently participate in the financial and business developments in the country.

Athens Exchange Group (ATHEX Group), provides support to the Greek Capital Market. ATHEX Group operates the organized Equities and Derivatves markets, the alternative market and performs clearing and settlement of trades.

The Athens Stock Exchange, through its markets, offers solutions and financing tools to businesses, expands investor choice by providing a safe, stable and easy environment in full alignment with international practices and the European regulatory framework.

In a period that the role of stock markets in exploring alternative ways of financing business, at a European level, is significantly enhanced, the Athens Exchange Group has taken a series of initiatives to highlight the attractiveness of the Greek Capital Market and the Greek companies to the international investment community and expand the variety of investment opportunities.

Its shares are traded on the Main Market of the Athens Exchange (Symbol: EXAE).

The profiles of the ATHEX Group and its markets can be downloaded from the link. More information can be found in the website www.athexgroup.gr.