GEK TERNA enters a race against time to raise €500 million as it prepares its debut in international bond markets, seeking to secure timely funding at a time when borrowing costs remain under pressure. The development confirms the report by BankingNews (BN), which revealed that the conglomerate was preparing a Eurobond issuance of up to €500 million during a juncture when companies must navigate carefully, as market fluctuations can upend planning. GEK TERNA announced it instructed a syndicate of international and Greek banks to launch meetings with institutional investors starting Monday, October 19, 2026, to assess whether adequate demand exists for the new issue. The offering will follow provided market conditions allow. The critical question is not only whether the company will raise the €500 million, but also at what cost it will secure the capital. In a market where yields have risen and investors evaluate risk more strictly, issue pricing will serve as a decisive factor.
The €500m bond maturing in 2027 creates time pressure
The new issue acquires particular significance as a €500 million corporate bond issued by GEK TERNA in 2020 matures in July 2027. The upcoming maturity creates a specific funding challenge: the group must manage a major obligation in advance without relying entirely on prevailing market conditions at the final hour. Choosing early preparation for the new issue can mitigate the risk of adverse surprises, yet it does not eliminate the core problem companies face when refinancing large bond obligations in a higher interest rate environment. According to BN's previous report, GEK TERNA retains €188.7 million from its previous corporate bond issuance. This element forms part of the available liquidity picture without being sufficient on its own to draw conclusions regarding total liquidity or group funding requirements. The question remains whether the company will manage to secure the desired capital under terms that do not excessively burden its future financial position.
What BN reported on October 13
Alarm signal for GEK TERNA: Why it is "desperate" to find €500m and paying top dollar for money — The Titan case
In a difficult international climate within the bond market, and ahead of potential political uncertainty in 2027, listed companies (GEK TERNA, Titan) are advancing international issuances to exploit any positive market window, either to repay older issues or top up existing ones. According to banking sources, GEK TERNA will issue a Eurobond of up to €500 million, while TITAN seeks €150 million by tap-reissuing its January 2026 bond (3.5% coupon). According to banking executives, following turmoil caused by rising yields, the bond market exhibits slight stabilization across both international corporate bonds and Greek bank bonds, with new issues displaying a minor margin increase of five basis points. In other words, despite broader repricing of borrowing costs—particularly regarding government bonds—an opportunity exists when energy prices driving inflation and yield spikes temporarily smooth out.
The issuances
Regarding GEK TERNA, a €500 million corporate bond issued in 2020 matures in July 2027. The company retains €188.7 million from last year's corporate bond; however, it is attempting to "test" international bond markets for the first time. GEK TERNA gave mandates to Goldman Sachs, Italian Mediobanca, and HSBC, which will execute the transaction in cooperation with domestic banks. On the other hand, Titan faces a simpler task, as its transaction constitutes a tap issuance of its senior unsecured 5-year bond maturing in 2031 with a 3.5% annual coupon. In such cases, the yield moves close to the existing issue's trading level. The January bond carried a 3.5% coupon and achieved a 9.2x oversubscription, raising €3.2 billion. Today, that bond trades at 95.44% with a yield of 4.68%. It is recalled that Titan has already funded its investment program with acquisitions in Turkey and Central Europe, while yesterday acquiring a minority stake in the building materials technology platform Command Alkon.
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