Greece: PPC – Pimco securitization deal

, SEE Energy News

Regarding electricity bills overdue for more than 90 days, Greek state-controlled Public Power Corporation (PPC) will sign a securitization agreement with international investment giant Pimco. According to the agreement, PPC will receive about 200 million euros out of the total sum of 300 million euros in unpaid receivables.

Last year, PPC finalized a deal to sell off unpaid bills to investment bank JP Morgan that will raise about 200 million euros. PPC is struggling under a pile of about 2.7 billion euros of electricity bills owed by Greeks hard up because of the country’s decade-long debt crisis. PPC said it had signed contracts to sell bills in arrears of up to 60 days. Finacity Corporation arranged the transaction. Some 350 million euros raised through two securitization agreements, along with 775 million euros raised through two recent bond issues, represents major cash flow relief worth 1.2 billion euros, which will be used to facilitate the company’s upcoming investments and cover its operating costs.