Terna Energy Finance, a member of Terna Energy Group, will launch a public offer of a EUR 150 million seven-year bond on October 16. Greece’s first green bond offer will be deemed successful if at least EUR 120 million worth of securities are subscribed.
The public offer of the green bond, certified by the Climate Bond Initiative, closes on October 18, according to reports and announcements from Terna Energy Finance.
If the public offer is successful, the bond will be admitted for trading in the category of fixed-income securities of the Athens Exchange (ATHEX).
The maximum amount for subscription is the total amount of the public offer, or 150,000 bonds, each with a nominal value of EUR 1,000. The minimum amount for participation is one (1) bond, according to Terna Energy Finance’s latest announcement.
The interested private investors can file their subscription statements through a range of channels, including at the branches of the joint coordinators and bookrunners, namely Piraeus Bank and Alpha Bank, the lead underwriters (Eurobank Ergasias and National Bank of Greece) and the underwriters (Optima Bank and Euroxx Securities), and the ATHEX electronic book-building service (E.BB.) members.
The institutional investors need to file their subscription statements directly to the joint coordinators and bookrunners and the underwriters.
Following the determination of the final yield, the interest rate and the offer price, the joint coordinators and bookrunners will determine the size of the issue and subsequently the allocation of the bonds to investors will be implemented as follows:
- 30% of the bonds (at least 45,000 bonds in the event of full subscription, i.e. issue of 150,000 bonds) will be allocated to private investors; and
- 70% of the bonds (up to 105,000 bonds in the event of full subscription, i.e. issue of 150,000 bonds) will be allocated among institutional investors and private investors.
Green bond to repay loans, possibly build 14 new wind farms in Greece
The green bond is aimed at the repayment of a EUR 60 million loan the company received in 2017 for the repayment of a corporate bond at the time, Ekathimerini wrote.
Another EUR 90 million will go toward paying off borrowing that covered part of the price for a wind farm bought in Texas, while some funds may also go toward the construction of 14 new wind farms in Greece with a combined capacity of 218 MW.
A few months ago, Terna Energy began a new EUR 150 million investment on the island of Evia, where it is building nine wind parks totaling 121 MW.