PPC is entering the markets again today, for the second time in four months, seeking to take advantage of the positive investment momentum.
With a bond that also includes a sustainability clause (SLB), the management of the public enterprise aims to raise 300 million euros for the refinancing on more favorable terms of its existing borrowing.
The duration of the bond will be seven years and, according to sources, if conditions allow, the book of offers will be opened today. It may close after two days giving the necessary time for registrations. According to market participants, the company’s management does not intend to raise more funds than it is requesting, ie it will be satisfied with 300 million euros, wanting to achieve a satisfactory return.
As mentioned above, this bond will also have a sustainability clause. In the previous version, which lasted for five years, PPC had committed to reduce CO2 emissions by 40% by 2022. This target with the planned issue is expected to be adjusted.
According to the same information, the income that will be raised by PPC will be used for the refinancing of its debt, considering the interest rate conditions favorable for achieving such goals.
The public utility company has achieved significant results in the cost of borrowing last year.
As recently noted by the President and CEO of PPC George Stassis, PPC has managed to reduce debt and borrowing costs thanks to the turnaround and the implementation of cost savings programs and the development of a strategy to enter the “green” energy market. For 2020 it decreased by approximately 400 million euros, while the net debt ratio to EBITDA was also improved. This was 3.7 in 2020 when in 2019 it stood at 11 !.
In relation to the yield of the sustainability bond recently issued by PPC, raising funds of 775 million euros, the interest rate, according to the information, is currently at 2.8%, compared to the 3.875% at the start of trading.
