PPC relying on three big cash injections, one already through

The Greek State’s discount-securing prepayment of a 550.7 million-euro sum to the main power utility PPC for the year’s electricity consumption by all national, regional and local government authorities, made on March 7 following a finance ministry order, according to local media, is the first of three cash injections expected to offer major financial relief to the power utility.

PPC is planning to securitize unpaid receivables, which will be offered as collateral for two bond issues, being organized by Deutsche Bank and Finacity. These are expected to raise at least 300 million euros.

The power utility has also relaunched an older quest for the return of a public service compensation (YKO) amount worth about 700 million euros and concerning the year 2011. PPC had been lawfully deprived of this amount but insists it was treated unfairly. The power utility has begun related talks with RAE, the Regulatory Authority for Energy, already believed to be tilting towards PPC, and the government. This effort could bring the national budget into the picture for a lump sum payment to PPC.

As for the 550.7 million-euro prepayment already received by PPC for the Greek State’s overall electricity needs in 2019, the utility intends to use about 150 million of this amount to help service a 350 million-euro bond payment maturing at the end of April, chief executive Manolis Panagiotakis has informed. The remaining 200 million-euro amount is expected to be covered through bank loans.