OTE issues first ever bond with negative interest rate

OTE bonds

Hellenic Telecommunications Organisation OTE SA on Friday announced the successful completion of two bond sales, worth 150 and 200 million euros, respectively, through its UK subsidiary OTE Plc.

The first bond issue has a negative interest rate of -0.237%, and the second an interest rate of 0.627%. It is the first bond in the history of OTE with a negative interest rate.

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The new bonds were fully covered by Deutsche Telekom AG.

The bonds carry the guarantee of the Greek telecommunications company and were issued in the framework of GMTN Programme under English law, and are not listed for trading.

Settlement was completed on 14 May.

The proceeds from the bond loans will be used to refinance an existing bond worth 200 million euros and other business needs of the group.

READ MORE: New 5-year bonds issued by Greece.