The bond, with a coupon of 7.25%, will be guaranteed by the company's parent, local telecommunication service provider Hellenic Telecommunications Organisation SA (ATH:HTO), or OTE
, Reuters reported on Tuesday.
The Commission has doubts that Greeces financial contribution to the VRS is limited to relieving OTE of extra costs compared to other operators offering redundancy/early retirement schemes to their employees.
The Greek government claims that the financial contribution does not constitute state aid, in particular because it only served to free OTE from exceptional expenses due to the specific status of OTE employees, similar to that of civil servants.
OTE members must provide a cooling-off period of 15 days, while the EU Timeshare Directive provides a minimum 10-day cooling-off period, in which it is permitted to change your mind and get your money back.
But if buyers are not offered a cooling-off period in writing, says OTE, they should walk away from any deal.
Consumers with queries about timeshare and holiday clubs can contact OTE on fax 00 32 533 3061 or email to infoote-info.com
The service also gave its BB rating to OTE's proposed senior unsecured notes and placed the issue rating on "negative" watch.
The agency believes the operating prospects for the company have not changed significantly since March 8, 2011 when it downgraded OTE despite the recent rating reduction on Greece to BB-.
The one-notch gap between the long-term rating on OTE and the sovereign rating is based on the telecom's remote debt restructuring risk given that the new debt offering would help it sustain its "adequate" liquidity profile", S&P said.
The projected GDP contraction of 3.5% in 2011 under S&P baseline scenario would strain OTE's operations and financial profile, notably its earnings and free operating cash flow, the agency cautioned.