Securization of PPC arrears, between 1 to 1.5 bln€, expected by Sept. 2019

Tuesday, 07 May 2019 10:52
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By K. Deligiannis

A plan to securitize Public Power Corp.'s (PPC) arrears, a process by which Greece's dominant electricity utility hopes to raise at least 300 million euros, will come before September 2019, according to reports.

Sources close to the current PPC leadership said the relevant preparation has begun over the past two months, while a "data room" is being readied for would-be investors to be briefed on the specific portfolio.

The state-run and ATHEX-listed utility, the previous all-powerful power monopoly in Greece for decades and a mainstay of the state's presence in the economy, wants to securitize between one and 1.5 billion euros, which will be transferred to special purpose vehicle (SPV) companies.

Initial planning calls for at least two SPVs, one for arrears - owed by consumers to the utility and up to 60 days - and one for arrests exceeding 90 days.

Debt-laden PPC will be the sole shareholder of the SPVs, which will attract investment that will, in turn, be transferred to the former, the parent company, with the arrears serving as the guarantee.

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