Reports that GEK TERNA, headed by George Peristeris, is considering a new bond issue in the coming period are circulating in the market due to the group's increased financing needs. GEK TERNA has opened many fronts simultaneously. Major infrastructure projects, concessions, BOAK (Northern Road Axis of Crete), Kastelli airport, private investments, and the Ellinikon casino create an investment program requiring significant capital and a continuous supply of liquidity. However, many questions arise... Because a large project backlog is certainly important for a construction group, but it does not automatically convert into cash.
Ellinikon casino absorbing funds
A special case is the Ellinikon casino, GEK TERNA's investment with American firm Hard Rock International. It is a large-scale project requiring significant equity contributions before it begins generating operational cash flows. Reports indicate GEK TERNA has made substantial disbursements, while its total commitments for participating in the investment remain high. At the same time, market reports cite intense disagreements with Hard Rock, creating questions over the project's progress and cooperation between the two sides. The core issue is that the casino is not yet a source of operational revenue, but an investment demanding capital. The complex's opening is now slated for the summer of 2029.
Why is a new bond needed?
The most fundamental question is a reasonable one. Why would GEK TERNA seek new funds through a bond issue? Is it facing cash pressures due to the heightened needs of ongoing projects, or is this a refinancing and debt management move? Above all, is additional debt the appropriate solution when the investment program constantly demands fresh capital? It is recalled that in 2025, GEK TERNA proceeded with a bond loan issue of up to €500 million. If it is now evaluating a new issue, management owes an explanation regarding what need it is called to cover, where the new funds will be directed, and to what extent this financing enhances the group's financial flexibility or further inflates its debt obligations.
New bond and the bank question
If GEK TERNA ultimately proceeds with a new bond issuance, the critical issue will be who finances the effort. Will it be Greek banks, which already maintain a significant presence in financing major projects and concessions, or will capital be sought from international financial institutions and investors? In the former case, it must be clarified what the additional exposure of domestic credit institutions will be and what terms will accompany the new financing. Turning to international markets represents an alternative, but it is not without risk. Geopolitical developments, energy uncertainty, and fluctuations in corporate bond yields impact borrowing costs. For an issuer, the objective is not merely to raise capital, but to do so under terms that will not excessively burden future corporate profitability.
What bankingnews.gr reported on September 27, 2026
Systemic bomb for Greek banks: GEK TERNA's extremely provocative debt of €9.3 billion
GEK TERNA's loans represent an extreme systemic bomb for Greek banks, as bankingnews (BN) reveals that while GEK TERNA advertises a net debt of €4.1 billion in press releases, in practice it exceeds €9.3 billion, with a debt-to-EBITDA (earnings before interest, taxes, depreciation, and amortization) ratio standing between 10 to 12 times... figures displayed by bankrupt companies abroad or entities potentially heading toward default and insolvency.
How is GEK TERNA group debt structured?
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Letters of guarantee of €1.9 billion (written commitment by banks)
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New loan for the Northern Road Axis of Crete (BOAK) of €1.4 billion
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Loan for Attiki Odos of €2.60 billion
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Loan for Egnatia Odos of €1.039 billion
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Loan for Nea Kentriki Odos of €391 million
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Kastelli, Public-Private Partnerships (PPPs) in water supply, waste management, HERON, TERNA Construction, other operational activities... loans amounting to €644 million
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Parent company debt of €1.345 billion Total aggregate debt of €9.3 billion This analysis excludes non-consolidated stakes, in which case debt rises even further. GEK TERNA's €4.1 billion in debt cited in misleading press releases... in practice stands at €9.3 billion.
www.bankingnews.gr
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