THE BLOG
07/09/2014 12:03 pm ET Updated Sep 07, 2014

Powering the Revival of the Greek Economy

New perspectives are opening for Greece as the country slowly emerges from the debt crisis. Last week, after five long years, the Hellenic Capital Market Commission approved the application of Greek renewable energy producer, "TECHNODOMIKI ANEMOS S.A.," to launch an initial public offering, making it the first company to list on the Athens Stock Exchange since 2009.

The prospectus for the IPO, to be held from July 9 to 11, has already been approved by the exchange commission and, during a press conference held last Friday, company President and CEO, Anastassios Kallitsantsis, outlined three main reasons for choosing this period for the listing:

"1) the adoption by the Greek government of the "new deal," whereby the country's "green" energy producers will be offered a more stable operating and pricing environment;

2) the resolution of the lack of liquidity in the market which is expected by the end of the year;

3) the fact that the Greek economy as a whole has emerged from the "stage of stabilization" and is now entering the "stage of development."

The new listing, which many hope will become a harbinger of Greece's IPO revival, is the most promising development to emerge with respect to the Greek economy that has been mired in a crippling recession that has lasted for six years. The introduction of a profitable renewable energy company to the Athens Stock Market should encourage investment in other firms that have shown stability throughout the crisis and in newer businesses with potential for growth. The fact that Greece has recently been able to return to the markets with a successful 5-year bond offering is further proof of the steadying state of the nation's finances.

"ELTECH Anemos" is active in the production of energy from renewable sources, mainly through its 12 wind farms that generate a total output of 171 megawatts. The proceeds from the capital increase will go towards the completion of 4 additional wind farms that are currently being built and will produce a further 93,5 MW of power.

Beyond that, the company has projects totalling a further 323 MW in the mature planning stage and has secured production licenses for an additional 475 MW of power.
According to the company's press release, ELTECH Anemos, will offer investors 20,667,00 new common shares out of a total of 82,667,000 shares.

The Group's aim is to raise 40 million euros to finance its investment plans for 2014-2015, which involve the implementation of new power projects totalling 94 MW and which are already under construction. The company plans to utilize all types of financing within the next 18 months with 45% of the funds raised to be used in the second half of 2014, 40% in the first half of 2015 and the remaining 15% designated to be spent in the latter half of 2015.

It should be noted that ELTECH Anemos is a major player in the renewable energy market in Greece, with an emphasis on wind energy production in the Greek territory. The main purpose of the company is the design, development and operation of wind power projects. With the enactment of the government's "new deal" that cuts the price energy producers will receive but pays them on time and allows them to recover arrears, the company will be operating in a clearer environment that will provide for stable rates of return over the next 20 years and offer significant growth potential.

The company has developed a diversified portfolio of projects, spanning the country from Thrace to Crete and from Lesvos to Cefallonia and taking advantage of the nation's considerable potential in renewable energy. It currently has a total installed capacity of 171 MW, 164 MW of which are related to wind energy. Over the last three years, production capacity has doubled from 87 MW to 171 MW and revenues have increased to €37 million (in 2013) in the midst of the economic crisis.

It now seems that Greece has much to be hopeful for, not only in the fortunes of its capital market but in the future of its energy sector as well.