OPAP says bond issue yield range at 3.4-3.9 pct

OPAP on Tuesday said the yield range of its five-year bond issue worth up to 200 million euros was set at 3.4 pct – 3.9 pct by the coordinators of the issue.

The bonds will be offered through a public tender using a book-building process of the Athens Stock Exchange and will be listed in the Fixed-Income Category of the market.

The public offer begins on Wednesday, 15 March and will be completed in March 17. Under the terms of the issue, if the offer failed to cover at least 100 million euros, the issue will be annuled. The interest rate of the issue can be equal to the final yield or to be up to 25 basis points lower than this. Coordinators will set the interest rate and the price offer of the issue.

OPAP plans to use the new capital to implement its investment program, of which 72.1 million euros to upgrade its IT systems and agent network, 25.2 million to develop a VLTs network and 20.3 million euros to install self-service betting terminals and virtual terminals in its network.

Market officials expect the interest rate of the issue to be significantly higher from commercial banks’ time deposit rates.