OTE receives EBRD-led €389 million syndicated facility to fund strategic investments in Greece

 

 

Αthens, September 13^th 2016 – The Hellenic Telecommunications Organization SA (OTE SA or Company) announces the signing of an agreement with the European Bank for Reconstruction and Development (EBRD) to raise €339 million as a syndicated facility and a parallel bilateral loan with Black Sea Trade and Development Bank (BSTDB) of €50 million in order to provide additional liquidity for OTE Group's strategic investments in Greece and enhance the development of New Generation Networks.

 

OTE Group's investment plan in Greece for the next four years is expected to reach €1.3bn and includes the development of Next Generation Access (NGA), the IP network transformation as well as the launch of new innovative products and services. Investments in NGA are an important lever for economic growth and business development, offering to consumers faster internet, improved quality and wider coverage, bridging the digital divide. Through the implementation of its investment strategy, OTE Group will not only support the growth of the Greek economy but also contribute substantially to Greece achieving the “Digital Agenda for Europe 2020” targets.

 

EBRD and BSTDB have recently included Greek companies in their financing agendas, having specific plans to invest in projects which support Greece's economic growth. OTE Group, with its ambitious investment plan, by far the largest in the Greek telecommunications market, targeting development and growth, can benefit from the presence of such organizations in Greece.

 

On the EBRD Syndicated Loan, the Mandated Lead Arranger is the National Bank of Greece S.A. The Lead Arrangers are HSBC Bank Plc and Hellenic Bank Public Company Ltd, while BNP Paribas S.A., Nomura International Plc, Alpha Bank Albania, Piraeus Bank S.A. and Cordiant participate as Arrangers.

 

OTE Group Chairman and CEO, Mr. Michael Tsamaz, commented: “OTE Group, by far the largest investor in NGAs in Greece, brings today the technologies and networks of the future.  Despite the economic crisis, with our solid strategy and bold decisions, we have maintained intact our ability to invest the substantial amounts required for new networks. For the next four years, we are implementing an ambitious €1.3 bn investment plan. Our country needs networks and telecommunications of high standards to return to a growth track. Our cooperation with the EBRD and BSTDB highlights the developmental aspect of our investment plan while their presence in Greece can further ignite potential in other sectors of the economy.”

Mr. Dirk Werner, EBRD Director, Information and Communication Technologies, noted: “We are delighted to sign this very important transaction with OTE today. It will provide the company with the means to continue its ambitious investment programme. But it is also sending a very strong signal to the market that the Greek financial market is open for business again. We hope that this will encourage other investors to take a close look at the opportunities Greek companies are offering”.

 

Mr. Ihsan Ugur Delikanli, BSTDB President, noted: “Supporting economic recovery and growth in Greece in the current challenging economic environment is a top priority for BSTDB as a regional development bank. To this end, we are strengthening synergies with other development institutions, such as the EBRD, and with private investors. By financing OTE, one of the largest innovative companies and employers in Greece, we cast a vote of confidence for our host country's economy and invest in its future”.

 

The announcement is issued as Regulated Information, in accordance with Law 3556/2007, [article 3, par. 1 (f), (bb), and article 21], Regulation No 596/2014 of the European Parliament and of the Council on market abuse and the relevant Decisions of the Hellenic Capital Market Commission. 

 

 

FOR FURTHER INFORMATION:

 

OTE GROUP INVESTOR RELATIONS Τel. + 30 210-6111574 Fax: + 30 210-6111030 E-mail: iroffice@ote.gr

 

 

 

About the European Bank for Reconstruction and Development

The European Bank for Reconstruction and Development was founded in 1991 to support the development and financing of businesses in European countries. The bank's shareholders are 65 countries, including Greece, the European Union and the European Investment Bank (EIB). It is a global investment bank and invests only in private companies operating in Eastern and Southeastern Europe, Russia and Central Asia.

It is the largest investor in Central and Eastern Europe, where it has a strong presence through a network of more than 30 local offices and from its establishment, has invested more than €105 billion in 4,500 projects.

  

About the Black Sea Trade and Development Bank

The Black Sea Trade and Development Bank (BSTDB), an international financial institution with headquarters in Thessaloniki, Greece, was established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey, and Ukraine. BSTDB started operations in June 1999 and has authorized capital of €3.45 billion. The Bank supports economic development and regional cooperation in the Black Sea Region through trade and project finance lending, guarantees, and equity participation in private enterprises and public entities in the member countries.   BSTDB is rated A-/A-2 by Standard & Poor's, and A2/P1 by Moody's.