Greek corporate bond market made a positive debut

A new Greek corporate bond market made a positive debut with the successful public offer for Housemarket’ bond loan which was 1.254 times oversubscribed attracting 565 investors.

It was the first public offer and listing of common bonds in the Athens Stock Exchange using the market’s electronic book building service.

The new head of the Capital Market Commission has set as priority the creation of a regulatory framework to allow the listing of new alternative products in the Greek capital market and a law was voted in Parliament in September 1 deregulating the Greek market for the issuance and trading of corporate bonds. Healthy Greek enterprises will be able to issue and to offer through the Greek capital market bonds with a fixed yield (coupons) to all interested investors, domestic and abroad. It is something that the market and enterprises wanted for several years, Christos Gotsis, president of the Capital Market Commission said. The corporate bond market is mainly addressed to medium and larger healthy enterprises.

Housemarket SA, a subsidiary of Fourlis Group and the Greek retailer of IKEA products, on Tuesday announced the successful completion of an electronic book-building on a public tender to issue a 40-million-euros bond loan. The company said bids submitted totaled 50,174,290 euros and Housemarket issued 40 million bonds at an offer price of one euro each, distributed in 13,000,677 bonds (around 32.5 pct of total bonds) to individual investors and 26,999,323 bonds (around 67.5 pct of total bonds) to special investors.

A company announcement said its board expressed its warm thanks to investors for their response to the public tender for the listing of the company’s shares in the Fixed Income category of the Athens Stock Exchange. Housemarket said the public tender was 1.254 times oversubscribed and that the number of participating investors reached 565.

Euroxx Securities acted as advisor, National Bank, Euroxx Securiities, Investment Bank of Greece and Pantelakis Securities acted as underwriters while RSM Greece as financial advisor and Sardelas Liarikos Petsa Law Firm was legal advistors to the issue.

Trading on the new bonds will begin on Thursday, 6 October, at a starting price of one euro per bond.