PPC business plan well received by US, European funds

Power utility PPC’s business plan has been well received by major international funds at a London roadshow co-organized by the Athens bourse and Morgan Stanley and involving 29 Greek companies, ten of which are from the energy sector.

PPC’s administration has held over 30 meetings with American funds such as Sandglass and Manulife, as well as European funds, including the UK’s Senvest, Polygon and TFG Asset management, which were informed on PPC’s business potential. Emphasis was placed on decarbonization, new RES projects, growth prospects in foreign markets, and digitization.

The meetings have included one-on-one meetings between PPC’s chief executive Giorgos Stassis and CEOs of foreign funds, who were offered detailed presentations of PPC’s business plan.

Some of these funds are already familiar with PPC’s activities and objectives, while others have only just begun showing interest, either through thoughts of purchasing company shares or participation in two PPC bond issues, a 775 million-euro bond maturing in 2026 and a 500 million-euro bond maturing in 2028.

PPC, emerging from the energy crisis unscathed and implementing its business plan without deviations, despite the challenging international environment, expects its EBITDA figure this year to reach between 800 and 900 million euros, approximately the same as last year, with a similar or improved performance next year.

PPC’s business plan foresees investments worth 9.3 billion euros over the next four to five years, 55 percent of the investment sum in renewable energy, 20 percent in electricity distribution networks, 7 percent in conventional energy sources, 4 percent in waste-to-energy production, and 3 percent in retail energy.

In geographical terms, 85 percent of PPC’s investments are planned for within Greece, the other 15 percent planned for the Balkans, primarily in Romania and Bulgaria.

PPC plans to invest 2.3 billion euros in 2023, 2.5 billion euros in 2024, 1.7 billion euros in 2025 as well as 2026.

These investments are expected to contribute to Greece’s improved energy self-sufficiency, reducing electricity imports to 10 percent in 2026 from 18 percent in 2020.



Ariadne Interconnection 20% tender a draw for funds, SGCC

A tender just launched by power grid operator IPTO to offer a 20 percent stake in subsidiary firm Ariadne Interconnection, established specifically for the development of the Crete-Athens grid interconnection, anticipates investment interest from funds, which would contribute to the infrastructure project’s financing and benefit from subsequent earnings.

Besides funds, which typically invest in infrastructure projects, State Grid Corporation of China (SGCC), IPTO’s strategic partner with a 24 percent stake, is also expected to express interest in the tender offering a 20 percent stake of Ariadne Interconnection.

A September 28 deadline has been set for non-bindings bids, it was announced yesterday. Participation by Greek energy companies is also likely, sources informed.

Participants are entitled to take part either alone or collectively as consortium members, the tender’s terms have specified. Also, bidders must meet own capital criteria of at least 750 million euros, annually, to be eligible for entry.

Ariadne Interconnection has already ensured one billion euros worth of capital for the project, it noted in the tender’s announcement, the sources being: 200 million euros of company capital; 400 million euros from the National Strategic Reference Framework (NSRF); a 200 million-euro Eurobank bond loan; and 200 million euros from the European Investment Bank.