Power utility PPC is preparing to issue two securitization packages of unpaid receivables totaling 1.5 billion euros, beginning with a package of 60-day receivables, whose agreement with investors is expected to be finalized by the end of March.
PPC is currently in talks with investors who will provide conditional funding in exchange for the packages.
A second securitization package carrying 90-day receivables needs more work. PPC is awaiting data that is required before it can commence talks with investors. Though this securitization procedure could also be completed by the end of the first quarter, finalization in April cannot be ruled out.
PPC is hoping to collect a sum of between 350 and 400 million euros for its two securitization packages carrying unpaid receivables of 1.5 billion euros.
The amount to be collected promises to offer the power utility a cash flow boost that will help fund the company’s investment plan.
Deutsche Bank and Finacity Corporation are organizing the two securitization procedures, sources informed.
Power utility PPC is making revisions to the previous administration’s securitization plan for unpaid receivables worth 1.5 billion euros.
Recently appointed PPC chief executive Giorgos Stassis and his team are taking cautious, slower steps, believing better preparation is needed for the two packages, respectively grouping unpaid receivables of up to 60 and 90 days. Investors are already showing signs of interest.
The initial plan, spearheaded by former PPC chief Manolis Panagiotakis, was planned to issue two packages in September.
Both packages are being developed concurrently, according to reliable enegrypress sources.
The power utility’s stricter handling of consumer debt generated by customers seen as capable but unwilling to settle their electricity bill arrears, combined with PPC’s new and revised installment-based payback plan, appear to be producing positive results for PPC’s cash flow.
If the securitization packages are to attract investor interest, participating funds will need to be convinced a substantial part of the debt owed is retrievable.
Pimco and CarVal Investors are among the funds believed to be expressing interest. Deutsche Bank is organizing the package for unpaid receivables up to 60 and Finacity the 90-day package. JP Morgan is also rumored to be involved in the procedure.