The main power utility PPC is expected to turn to funds for financing with the securitization of unpaid receivables worth 1.5 billion euros serving as security. The power utility anticipates it will borrow roughly 400 million euros through the procedure.
PPC’s chief executive Manolis Panagiotakis outlined the power utility’s borrowing plan on the sidelines of an annual conference held by HAEE, the Hellenic Association for Energy Economics.
The plan, according to Panagiotakis, will include the establishment of two PPC-owned special purpose vehicles representing unpaid receivables of two categories, one pending payments that have been delayed by between 60 and 89 days, the other by more than 90 days.
The SPV carrying unpaid receivables of between 60 and 89 days is expected to be more appealing for funds as it entails less risk.
Amounts to be attached to coupons and loan durations are currently being discussed, sources informed.
The two SPVs are expected to be ready within the summer, according to Panagiotakis. PPC officials are currently preparing a virtual data room for prospective investors as well as technical and financial appraisals of unpaid receivables to be securitized.
The influx of a 400 million-euro amount anticipated from this effort is expected to offer the power utility significant cash-flow relief.
Unpaid receivables concerning low-voltage household and business consumers are expected to be targeted.