Power utility PPC is reinforcing its financial position for protection against challenges already brought about by the coronavirus crisis and ones not yet fully apparent.
The corporation’s board has approved moves worth 300 million euros, including restructuring of high-cost loans, in an effort to boost its liquidity.
Financial tools and alternative borrowing sources have once again become available to the corporation following its return to profit territory and growth prospects.
Investors and banks are expressing renewed faith in PPC, as was made clear yesterday by three decisions taken by the utility’s board promising to inject about 300 million euros into the company.
CEO Giorgos Stassis and his board approved a JP Morgan offer worth between 200 and 250 million euros for unpaid receivables by customers in the low and mid-voltage categories. This package of unpaid receivables totals 260 million euros and concerns amounts overdue for no more than 60 days. The financial services company is offering an interest rate of 3.5 percent over a three-year period. Bonds will be issued by PPC through an SPV.
Also, the country’s four main banks, National, Alpha, Eurobank and Piraeus, have accepted a request by PPC for a delay in the payments of two 25 million-euro installments, respectively due June 30 and December 31, for a one billion-euro, five-year bond issued in 2018. The systemic banks, showing faith in PPC, agreed to receive these payments when the bond matures in 2023.
In addition, PPC has further diversified its borrowing sources. The board approved an Optima Bank proposal for a 15 million-euro debenture loan with floating six-month interest.