The board of Public Power Corporation (PPC) approved on Wednesday the second package of debt securitizations in an extraordinary meeting, after an offer was submitted. This concerns electricity bills overdue for more than 90 days, the securitization of which could fetch revenues of 300-350 million euros to the ailing power utility.
Sources say the offer for the package came from international investment giant Pimco, while the organizer of the transaction is Deutsche Bank. The same sources note that interest is formed at 6.8%, which is considerably higher than the rate of 3.5% on the first package of bills unpaid for up to 60 days, conceded late last month to JP Morgan.
Kathimerini understands that some PPC board members expressed some concern about the level of the interest rate but went on to approve the concession contract, with the exception of union representative Nikos Fotopoulos, who voted down the proposal.
The first concession, of debts adding up to €260 million, should fetch revenues of €200-250 million for PPC, which means the utility can expect a total of €500-600 million from the securitizations, which would boost its liquidity.