Greece: ELPE plans bond issue to refinance debt

14. October 2016. / SEE Energy News

According to Greek newspapers, the country’s largest oil refiner Hellenic Petroleum (ELPE) is planning new bond issue in order to refinance an existing 500 million euros bond which is due in May 2017. The new bond should be issued by the end of the year.

With the issuance of new five-year bond that will mature in 2021, the company plans to refinance a bond issued three years ago at an interest rate of 8 %. ELPE hopes to secure a yield of about 5 % for the new bond. It will be offered through the Luxembourg Stock Exchange while Credit Suisse Securities Limited, HSBC Bank PLC, Eurobank Ergasias, Alpha Bank, National Bank and Piraeus Bank will serve as the issue’s joint bookrunners.

Hellenic Petroleum has recorded strong financial results both in the second quarter and the first half of 2016. According to the company’s financial data, in the second quarter of 2016 ELPE recorded earnings before interest, taxes, depreciation and amortization (EBITDA) in the amount of 156 million euros, which is 20 % more than in the second quarter of 2015. The company’s net income in the first half of the year amounted to 102 million euros, which is 57 % higher compared to the first six months of 2015. On a quarterly basis, net income in Q2 amounted to 72 million euros, a significant 47 % increase compared to last year’s second quarter.

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