PPC refinances debt at lower interest

PPC refinances debt at lower interest

Greece’s Public Power Corporation agreed with Greek banks to refinance an outstanding syndicated bond of 1.2 billion euros with a new five-year credit facility, the utility said on Thursday.

PPC, hit by unpaid bills during years of austerity, agreed this month to refinance the loan on “satisfactory and absolutely reasonable” terms.

The interest rate on the new loan is 5.8 percent compared to 6.5 percent on the initial one agreed in 2014.

The rate may ease to 5 percent if the utility makes early repayments.

PPC, which is selling 40 percent of its coal-fired capacity, also refinanced an outstanding bond of 175 million euros with a new three-year, 5.75 percent loan, it said. It also secured a new credit line of 200 million euros, to be used to help repay outstanding notes of 350 million euros due next year. [Reuters]

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