IPTO preparing to receive €300m loan at 6% interest rate

The power grid operator IPTO is preparing to recapitalize its existing loans, except for those extended by the European Investment Bank (EIB), with EU funding to be provided by the country’s four main banks that endorsed the operator’s split from its parent company PPC, the power utility, just days ago, as part of its privatization process.

IPTO expects to soon receive a loan of approximately 300 million euros at an interest rate of 6 percent.

Pundits have noted that the IPTO loan, negotiated by the operator for quite some time, would have remained an uncertain prospect had PPC, the parent company, not provided debt-service guarantees to the four banks.

The 6 percent interest rate secured by IPTO is slightly higher than other loans extended recently to Greek corporations. But the country risk factor came into play as creditors rate IPTO, as well as PPC, as they do the Greek State.

PPC is also currently negotiating with the four main banks for a 200 million-euro loan of its own. Achieving an interest rate of less than 6 percent would certainly be an achievement.