EBRD takes up 50mn euros in Greek power utility bond
- PPC, which is 51% owned by the state, on Thursday priced the 650 million euro offering due in 2026 at 3.875%. It has said that proceeds will be used to repay debt and for other corporate purposes.
- The issue is linked to specific sustainability targets, with PPC committing to reducing carbon emissions by 40% by the end of 2022.
ATHENS: The European Bank for Reconstruction and Development (EBRD) has invested 50 million euros in a sustainability-linked bond issued by Greece's biggest power utility Public Power Corp. (PPC), it said on Friday.
PPC, which is 51% owned by the state, on Thursday priced the 650 million euro offering due in 2026 at 3.875%. It has said that proceeds will be used to repay debt and for other corporate purposes.
The issue is linked to specific sustainability targets, with PPC committing to reducing carbon emissions by 40% by the end of 2022.
"The target translates into annual CO2 emission cuts of 9.2 million tonnes in 2022 compared to 2019 and is the most ambitious corporate decarbonisation target the EBRD has ever supported in the regions where it invests," EBRD said in a statement.
PPC is closing down all but one of its coal plants by 2023 and plans to invest heavily in renewables and in upgrading the country's electricity grid.
The EBRD has spent about 4 billion euros in Greek corporates in the financial, energy and infrastructure sectors since 2015 amid the country's debt crisis.