The publication was completed with great success of the new 7-year bond from PPC as the company eventually raised 600 million euros, up from the initial target of 500 million. The bids reached 2 billion euros, i.e. 4 times more than the initial proposal.

The coupon finally reduced to 4.625%(from 4.75%), which is a vote of confidence by the markets in the company, as it is the cheapest European 7-year coupon issued by a company with the same credit rating as PPC since February 2022. In fact, the spread in PPC bond it is the lowest the company has achieved on all the bonds it has issued since 2020 (200 bps lower than the 2020 and 2021 issues).

It is also noteworthy that the majority of investors in the PPC bond are foreigners, primarily long-term investors.

PPC proceeded to issue the bond, aiming to be a regular issuer in the international markets, without needing to refinance a bondas the two bonds that already expire in 2026 and 2028 and will be traded at the same time as the new third bond, which expires in 2031, proving the confidence of investors, who chose to finance the new PPC bond with new additional liquidity.

Where will the funds go?

The 600 million euros will be used for investments by PPC and its subsidiaries in the context of the group’s development business plan. With investments of €9 billion in the three years, mainly in RES, network upgrades and new activities, increased by 130% compared to the three years 2021-2023, the forward-looking business plan of the largest energy company in Southeast Europe, as PPC Group is now , after entering the Romanian market, is based on a holistic approach around the green transition and the tripartite clean energy generation, modern networks and customer-centric philosophy.

The management’s goal is for PPC Group to become an energy leader in the wider region and an important player in Europe, with healthy finances and comprehensive services. A “green” group that in 2030 will have an EBITDA of €3 billion from different activities, so that it can cope with any crisis and respond to its critical role in all the countries in which it operates.

The official announcement of PPC

The Public Electricity Company S.A. (“PPC”), Southeast Europe’s leading energy company, rated ‘BB-‘ with a stable outlook by Standard & Poor’s and Fitch, today announces the successful pricing of its offering (the “Offering”) of senior unsecured notes (senior notes), with a total nominal value of €600 million, due in 2031 (the “Notes”), with an interest rate of 4.625% and an issue price of 100%. This Offer, with a total nominal value of €600 million, represents an increase of €100 million of the initial proposed offering of an aggregate nominal value of €500 million announced on Monday, October 21, 2024. The Notes will be governed by New York law.

The proceeds from the Offering will be used to finance the ongoing capital expenditure projects of PPC and its subsidiaries and to pay the costs and expenses of the Offering.

PPC intends to list the Bonds on the Euronext stock exchange in Dublin for trading on its Global Exchange Market, or on another suitable trading venue in the European Union. The Offer is scheduled to settle on October 30, 2024, subject to customary closing conditions for such transactions.

Citigroup Global Markets Europe AG, Goldman Sachs Bank Europe SE and HSBC Continental Europe are acting as joint International Coordinators and Lead Book Managers, and BNP PARIBAS, Deutsche Bank Aktiengesellschaft, Nomura Financial Products Europe GmbH, Société Générale, and Alpha Bank S.A., Eurobank S.A., National Bank of Greece S.A., Optima Bank S.A., Piraeus Bank S.A., Ambrosia Capital Monoprosopi S.A., AXIA Ventures Group Limited, and Euroxx Securities AEPY are jointly acting as Joint Bid Book Managers in relation to the Offer.

PPC is Southeast Europe’s leading energy company and critical infrastructure operator, operating primarily in Greece and Romania. For more than 70 years, PPC has been at the forefront of Greece’s energy sector and an integral part of the country’s electrification. It is the largest producer and supplier of electricity, providing electricity to approximately 5.6 million end customers as of June 30, 2024. It also owns 51% of Hellenic Electricity Distribution Network Operator S.A., the sole owner and operator of the distribution network. electricity in the country. In Romania, PPC is the largest energy supplier and the second largest electricity distribution network operator, supplying energy to approximately 3.2 million end customers as of June 30, 2024. PPC is a listed company and its shares are traded on the Main (Regulated) Market of the Athens Stock Exchange with a capitalization of approximately €4.3 billion on June 30, 2024.