GEK TERNA S.A. (Bloomberg: GEKTERNA GA / RIC: HRMr.AT) announces that its subsidiary, NEA EGNATIA ODOS S.A., has today completed the financial closure of the transaction and paid the lump-sum consideration of EUR 1.275 billion, within the framework of the concession agreement for the financing, operation, maintenance and exploitation of Egnatia Odos for a period of 35 years, with the Hellenic Republic and the Hellenic Corporation of Assets and Participations (Growthfund) as counterparties.

The financial closure of the transaction marks the commencement of the Egnatia Odos concession by the GEK TERNA Group – Egis Projects consortium, in which the Group holds a 90% stake. It is noted that, as the consideration will be directed toward the repayment of public debt, the GEK TERNA is once again contributing to the support of the Greek economy.

The construction of the motorway began in the 1980s. Through total rehabilitation and heavy maintenance investments of EUR 3,8 billion to be implemented by the concessionaire, the motorway will be modernised and upgraded across all levels, significantly enhancing its functionality and the quality of service provided to users.

Egnatia Odos is the largest motorway currently in operation in Greece, with a total length of approximately 900 kilometres, and one of the largest continuous motorways in Europe. It crosses Northern Greece from east to west, starting at the Port of Igoumenitsa, which connects Greece with Italy, and ending at the Greek – Turkish border.

It acts as a catalyst for investment in Northern Greece in the sectors of transport, industry and tourism, connecting 11 cities, 4 ports and 7 airports. It substantially facilitates trade and mobility within the country, bringing Epirus and Western Macedonia closer to the metropolitan center of Thessaloniki, the second-largest city in Greece, as well as to the rest of Macedonia and Thrace.

Its area of influence accounts for 54% of agricultural production and 41% of total employment in industry and manufacturing nationwide. At a European level, Egnatia Odos connects major economic and industrial centers of Western Europe with those of Eastern Europe, creating a strong and enduring trade link between them. At the same time, it serves as a major collector route for the transport system of the Balkans and Southeastern Europe, as Pan-European Corridors IV (Berlin–Sofia–Thessaloniki), IX (Helsinki–Alexandroupolis) and X (Vienna–Belgrade–Thessaloniki) converge along its axis.

The transaction was financed through a combination of equity contributed by the concession consortium and loans provided by Greek banks.