Greece’s power utility PPC on Wednesday announced the successful completion of a seven-year bond issue raising 500 million euros from the market, up from an initial target for 350 million euros.
PPC is the first company in Europe to issue sustainability-linked bonds with two such bond issues this year.
In an announcement, the company said the interest rate of the issue was set at 3.375% and that the proceeds of the bond issue will be used partially to repay the corporation’s existing debt and all expenses related with the bond offer. PPC will list the new bonds in the Dublin Stock Exchange.
The issue was 6.5 times oversubscribed, with investors offering 2.3 billion euros. The interest rate is lower than initial estimates of 3.50-3.75%. Foreign investors covered 70% of the issue.
The bond has a clause of reducing CO2 emissions by 57% in the period 2019-2023. The previous bond issue by PPC in March (five-year) included a clause to reduce CO2 emmissions by 40% in the 2019-2022 period.