Amid a difficult international climate in the bond market, and ahead of potential political uncertainty in 2027, listed companies (GEK TERNA, Titan) are proceeding with international issuances to exploit any positive market "window"—either to redeem older issues or to tap existing ones. According to banking sources, GEK TERNA will issue a Eurobond of up to €500 million, while TITAN is seeking €150 million by reopening its January 2026 bond (3.5% coupon). According to banking executives, following the turmoil marked by rising yields, the bond market is showing slight stabilization across both international corporate bonds and Greek bank issues, with new offerings reflecting a minor spread widening of five basis points. In other words, despite the broader repricing of borrowing costs, particularly regarding sovereign bonds, an opportunity arises whenever energy prices—which drive inflation and overall bond yield spikes—temporarily normalize.
The issuances
Regarding GEK TERNA, a €500 million corporate bond issued in 2020 matures in July 2027. The company retains €188.7 million from last year's corporate bond; however, management is attempting to test international bond markets for the first time. GEK TERNA mandated Goldman Sachs, Italy's Mediobanca, and HSBC to lead the transaction in cooperation with domestic banks. On the other hand, Titan faces a simpler task, as its transaction represents a tap of its senior unsecured 5-year bond maturing in 2031 with an annual coupon of 3.5%. In such cases, the yield moves close to the secondary trading level of the existing issue. The January bond carried a 3.5% interest rate and achieved a 9.2-times oversubscription, drawing €3.2 billion in demand. Today, the bond trades at 95.44% of par, reflecting a bond yield of 4.68%. It is recalled that Titan has already funded its investment program through acquisitions in Turkey and Central Europe, while yesterday it acquired a minority stake in the construction materials technology platform Command Alkon.
Dimitris Pafilas
dpafilas@yahoo.com
www.bankingnews.gr
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