OTE Group on Thursday announced the successful completion of a bookbuilding process to issue a four-year bond loan worth 400 million euros.

In an announcement, OTE Group said the issue was around five times oversubscribed and the coupon was set at 2.375 pct annually, the lowest bond coupon issued by OTE Group in the last decade. The proceeds of the bond will be used to refinance part of its future debt obligations at very low interest rates in view of a commitment towards shareholders and an investment plan to promote fiber optics, new generation mobile telephony networks and the group's digital transformation.

OTE Group has reduced its borrowing by 500 million euros so far this year, to 700 million euros from 4.3 billion euros in 2010 (a decline of 83 pct). The new bond will be issued by OTE plc with the guarantee of OTE SA in the framework of an existing programme of medium- to long-term bonds under the English law. The new bond will be traded in the Luxembourg Stock Exchange. Settlement date will be July 18, 2018.

Deutsche Bank and Morgan Stanley acted as joint bookrunners/lead managers of the issue, while Alpha Bank, National Bank, Eurobank Ergasias and Piraeus Bank as co-managers.