Greece's PPC selling EUR 500m of sustainability-linked notes

Greek utility Public Power Corporation SA (ATH:PPC), or PPC, is offering EUR 500 million (USD 590.2m) worth of sustainability-linked senior notes in an upsized deal aimed at partially repaying existing debt.

The government-controlled power generator has set a goal to cut by 40% its carbon dioxide (CO2) emissions by 2022, equal to annual reductions of 9.2 million tonnes in 2022 against 2019 levels. A previously announced pledge envisages shutting down all of its coal-fired power plants by 2023 and replacing them with 1.3 GW of new solar and wind farms.

PPC unveiled plans for a EUR-350-million notes issue last week and subsequently expanded the offering to EUR 500 million. The unsecured notes, to be settled on July 21, mature in 2028 and bear an annual coupon of 3.375%. Once the transaction closes, they will be listed on the Global Exchange Market of Euronext Dublin or “on another appropriate trading venue in the European Union.”

Goldman Sachs Bank Europe SE and HSBC Continental Europe SA are acting as joint global coordinators and physical bookrunners.

In March, PPC raised EUR 650 million from selling sustainability-linked bonds in a deal that had an initial target of EUR 500 million. The European Bank for Reconstruction and Development (EBRD) was among the investors.

(EUR 1.0 = USD 1.180)

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