Marfin Investment Group of Greece has started to raise investments worth Eur660 million through a convertible bond issue. The group also intends to invest nearly two thirds of the proceeds for investment opportunities in Greece and in Southeastern Europe.
Even with the economic downturn in the country, many private equity firms are taking a second look in Greece with many attracted to the cheap prices of buyouts or investments in many companies.
Convertible bonds pay out a fix coupon but can be converted into shares at an agreed upon price. The demand for these kinds of bonds have increased as they provide high returns compared to what conventional bonds offer.
The new convertible bond from Marfin is tradeable at the Athens Stock Exchange and would be split into two separate tranches. The first one pays out a 7% coupon in six years while the second pays out at 6.3% in seven years.
The first tranche's volume is up to Eur408 million would be invested in new opportunities as well as growth in food and beverage, transportation and logistics as well as healthcare holdings. The second tranche would be to refinance Marfin's convertible bond loan.
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