Motor Oil proposes offering of as much as EUR400M notes due 2031

Motor Oil Hellas Corinth Refineries S.A. has proposed an offering of up to EUR400 million in senior unsecured notes due 2031, according to recent disclosures. The notes will be issued under the Greek Corporate Bonds Framework-Extension and are intended to support the company’s renewable energy investment program. The bond is listed on the Athens Stock Exchange and is scheduled to mature in 2028.

The European Bank for Reconstruction and Development (EBRD) has already invested EUR14 million in the same EUR200 million senior unsecured bond issued by Motor Oil, which is part of a broader initiative to strengthen local debt capital markets and promote environmental and governance standards. The EBRD’s participation is seen as a confidence-building measure in the current challenging market environment for oil refining companies.

The proposed offering aligns with Motor Oil’s strategy to transition toward cleaner energy solutions and improve operational efficiency. The company operates Greece’s most complex refinery and has a network of petrol stations and renewable energy assets. The funds raised will be used to finance renewable energy projects, furthering the company’s sustainability goals.

The bond offering reflects broader trends in the energy sector, where companies are increasingly seeking capital market financing to support green initiatives. However, the continued expansion of oil and gas projects remains a contentious issue, with environmental groups and climate advocates urging limits on fossil fuel development.

As with any bond issuance, the success of this offering will depend on market conditions and investor appetite. Motor Oil’s ability to attract sufficient demand will be influenced by its credit profile, the terms of the offering, and the broader economic and regulatory environment. Investors are advised to carefully assess the risks and opportunities associated with the issuance before making investment decisions.