Ote Ads Regulatory News (OTES)

OTE Group concludes €300 million financing package for network investments in Greece

Athens, July 10, 2017

OTE S.A. announces that COSMOTE S.A., 100% subsidiary of OTE S.A., signed a €150 million bilateral term loan with the European Investment Bank (EIB) and an agreement with the European Bank for Reconstruction and Development (EBRD) to raise a further €150 million as a syndicated facility. Both loans are under the corporate guarantee of OTE S.A. The funds will be used to provide additional liquidity for COSMOTE's mobile broadband network coverage and capacity expansion investments in Greece. The loan from EIB is provided under the European Fund for Strategic Investments. Both domestic and international banks participate in the EBRD Syndicated Loan.

OTE Group Chairman and CEO, Mr. Michael Tsamaz, commented: "Our investments are addressing the continuously evolving needs of the society and our customers, for enhanced communication networks and services. We are far and away the largest investor in telecommunications in Greece, having invested over €2 billion in the past six years and committed to another €1.5 billion by 2020, to establish optical fibre and 4G/4G+ networks. Next generations networks are not a luxury. They are the "sine qua non" of the digital age. We need to address the digital needs of customers and businesses in an environmentally friendly way to ensure our sustainability. Our cooperation with EIB and the EBRD will enable us to deliver our strategy and build the networks of the future, a prerequisite for the country's growth."

Mr. Nicholas Jennett, EIB Deputy Director General and Head of the Investment Team for Greece, said: "The EIB is committed to helping high quality, innovative Greek companies to realize their investment plans. We are pleased to be working with COSMOTE to enhance the company's already extensive network. This is precisely the kind of operation the Investment Plan for Europe was designed to support. I am delighted about this further step to bring the benefits of the European Fund for Strategic Investments to Greece".

Mr. Dirk Werner, EBRD Director Information and Communication Technologies, said: "This innovative transaction with such a notable green component is a priority for the EBRD in Greece. We are delighted to support a project that will boost energy efficiency standards, the local economy and Greece's telecoms sector as a whole."

This announcement is issued as a Regulated Information, in accordance with Law 3556/2007 [article 3, par. 1 p (bb), and article 21] and Regulation No 596/2014 of the European Parliament and of the Council on market abuse.

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About the European Investment bank

The European Investment Bank (EIB) is the European Union's bank. The EIB is the long-term lending institution of the EU and is the only bank owned by and representing the interests of the European Union Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. The EIB works closely with other EU institutions to implement EU policy.

As the largest multilateral borrower and lender by volume, the EIB provides finance and expertise for sound and sustainable investment projects which contribute to furthering EU policy objectives. More than 90% of EIB activity is focused on Europe but it also supports the EU's external and development policies.

Since 2010 the European Investment Bank has provided more than € 11 billion to ensure continued investment in crucial infrastructure including education, energy, transport, waste and water, and in companies across Greece.

About the European Bank for Reconstruction and Development

The EBRD is a multilateral bank committed to the development of market-oriented economies and the promotion of private and entrepreneurial initiative in more than 30 countries from Morocco to Mongolia and from Estonia to Egypt. The Bank is owned by 65 countries, including Greece, as well as the European Union and the European Investment Bank. In the countries where it invests, it aims to make economies more competitive, inclusive, well-governed, green, resilient and integrated. It is the largest institutional investor in many of the countries where it is active and since its creation in 1991 has invested more than €115 billion in over 4,500 projects.