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ATHENS, June 23 (Reuters) - Greek industrial group Mytilineos raised 300 million euros ($336 million) through a five-year bond on Friday, with the issue oversubscribed more than twice, the company said.
The success of the bond, which is the second major Greek corporate issue this year, signals improving investor confidence after Greece concluded a bailout review and secured a 8.5-billion-euro loan last week, analysts said.
The book building started on June 21 and closed on Friday. The yield was 3.10 percent, close to the low end of the 3.0 to 3.5 percent guidance range.
National Bank and Eurobank were the lead managers.
“After the completion of the second bailout review, Greek assets are derisking across the board,” Eurobank Equities analyst Nick Koskoletos said.
“Mytilineos is capitalising on its fundamentals and export-oriented profile via its aluminium business to tap the market in what is the largest bond issue to be listed on the Athens bourse’s fixed-income market,” he said.
Expectations that Greece’s economy will recover from the second half of the year and the absence of a planned corporate bond issue in the near future also helped, Beta Securities asset manager Konstantinos Boukas said.
The yield on 10-year Greek government paper has declined after euro zone finance ministers approved the disbursement of new bailout money last week. It stood at 5.4 percent on Friday.
Greece’s last venture into international bond markets was with two issues in 2014. The government has said the country should be able to return to bond markets soon.
Mytilineos is expected to incorporate its power plant construction, aluminium and electricity production units into the main group by the end of the month to simplify its structure and achieve cost savings.
Greece-based betting firm OPAP raised 200 million euros in March, via a 5-year bond issue at a 3.5 percent yield. (Reporting by Michele Kambas, Angeliki Koutantou and Lefteris Papadimas; Editing by Louise Ireland)