Hellenic Telecommunications Organization (OTE S.A.) (Greece)
In 2016, the Bank extended a EUR 50 million loan to the Hellenic Telecommunications Organization S.A. (OTE), the leading provider of telecommunication services in Greece and one of the largest in the South-Eastern Europe. The BSTDB financing is a parallel loan to a EUR 339 million syndicated loan provided by the European Bank for Reconstruction and Development (EBRD).
The funding will help finance OTE Group’s strategic initiatives in Greece, including the development of Next Generation Networks (NGN), fiber optic and Internet Protocol (IP) networks, as well as innovative products and services. This will benefit the Greek economy, financial markets and customers.
OTE Group operates in three Member Countries of the BSTDB: Greece, Albania and Romania, thus having strong regional cooperation impact.
OTE Group, the largest investor in NGNs in Greece, brings today the technologies and networks of the future. Despite the economic crisis, OTE has maintained intact its ability to invest the substantial amounts required for the new fiber optic networks. Greece needs networks and telecommunications of high standards to sustain its return to a strong growth track.
Supporting the economic recovery and growth in Greece in the current challenging economic environment is a top priority for the BSTDB as a regional development bank. To this end, the BSTDB is strengthening synergies with other development institutions, such as the EBRD, as well as with private investors. By financing OTE, one of the largest innovative companies and employers in Greece, the BSTDB has casted a vote of confidence in Bank’s host country’s economy and in the investments in its future.
The cooperation with the BSTDB and EBRD underlines the developmental aspect of the OTE’s investment plan, while the presence of International Financial Institutions in Greece is expected to further ignite the development potential in other sectors of the economy.
Total Project Cost: EUR 400 million
BSTDB financing: EUR 50 million
Maturity: 3 years
Type of financing: Corporate loan
