A new letter forwarded by the country’s four main banks to the power utility PPC essentially represents the preliminary approval of a 200 million-euro loan request by the utility following lengthy negotiations.
The power utility requires this injection to service maturing loans and bonds. At this stage, an expiring 200 million-euro company bond, set to mature this coming May, ranks as the utility’s most pressing need.
Though this loan does promise PPC some relief, it will require additional guarantees. The banks are demanding a 300 million-euro security pledge as collateral.
PPC is already examining ways to improve its cash flow through the establishment of new long-term electricity supply agreements with major-scale industrial consumers, which would further secure the prospect of the new 200 million-euro loan.
Aluminium of Greece, which has already signed a new supply agreement with PPC until 2020, ranks as the utility’s biggest client. The aluminium producer provided a 100 million-euro deposit as part of the agreement.
The utility has already received letters from other industrial enterprises pushing for electricity supply benefits equivalent to those offered to Aluminium of Greece. The producer was offered discounts for advance payments and long-term consumption.
Though PPC has yet to respond to these letters, the incentive to do so and estabish new industrial supply deals has increased as the utility’s cash flow is bound to receive a boost.