Power utility PPC has signed a new bond loan agreement for an amount of 300 million euros involving Alpha Bank as well as participation from Eurobank.
The loan amount, to be used for general business purposes, will have a three-year duration with an option for a further two-year extension.
More specifically, PPC plans to utilize the amount as working capital in the context of measures taken by the company to ensure and reinforce its cash flow in the short term.
The bond loan agreement includes a series of conditions including a clause committing PPC to a 40 percent reduction of CO2 emissions by December, 2022, compared to 2019.
According to sources, the new bond loan agreement has a lower interest than levels achieved by PPC in recent bond issues.
PPC’s most recent bond issue, last month, was offered at an interest rate down to 3.375 percent.
The success of PPC’s preceding bond issues was instrumental in the company’s negotiations with banks for a further reduction in its borrowing costs.