Earlier than expected, the redemption of the EUR 670 million Eurobonds issued by the Ellactor Group in December 2019 is finally moving forward. Initially, this was supposed to happen towards the end of the year. However, yesterday, the group’s management sent an offer to bondholders to buy their bonds instead of cash for 1010 euros, as well as pay unpaid interest. The bond is issued with a yield of 6.375% and matures in December 2024, as it has a term of five years.

The group’s management proposes to buy back the bonds instead of cash, for a fee of 1010 euros, as well as the payment of unpaid interest.

The redemption period ends September 21st. By then, it is estimated that the process of separating the renewable energy sector and including it in the new motor oil scheme will be completed in the context of a recent agreement between the two groups. Based on this, Ellactor will raise around EUR 750 million for the sale of 75% of the renewable energy sector to the Vardinogiannis group, which also acquired a 29.87% stake in a listed construction company. It was this development of events that allowed Elactor to start early redemption of Eurobonds and take an important step in the process of restructuring its financial costs, which acted as a “weight”.

This event is expected to give the group’s management more time to prepare their next steps, with a focus of course on increasing liquidity, in order to qualify for more important tenders such as the new Attica Road Concession Agreement it is bidding for with the French group. Ardian and Avax. With the redemption of the bond, the Ellactor Group will now have almost zero debt (apart from loans associated with selected concession projects, from the proceeds of which the related debts are also repaid). Sources in the group say that this advantage will allow it to more dynamically reposition both in concession projects and in the energy sector. According to well-informed sources, the goal in the energy sector will be twofold: on the one hand, to provide new licensed renewable energy projects, either under construction or in operation, and on the other hand, to enter the promising sectors of offshore wind farms and energy storage. . Ellactor, like most construction companies, believes that offshore wind turbines will be a new growing sub-sector of the renewables market in the coming years and wants to be at the starting point with the best prospects possible.