PPC mulls securitising overdue bills to tap bond markets, according to paper

Public Power Corp (PPC) is considering securitising part of its backlog of unpaid bills and using them as a guarantee to tap bond markets later this year, a Greek newspaper reported on Thursday.

PPC, which is 51 percent state-owned, has hired an adviser to help collect part of its overdue bills worth more than 2.5 billion euros that were left unpaid in austerity-hit Greece in recent years.

Citing unnamed sources, Ta Nea newspaper said PPC will seek to raise 200-300 million euros via a bond which will be covered by outstanding debts. It said Deutsche Bank and Finacity have been organising the process.

The utility previously said it was examining options to raise 300-400 million euros from debt markets this year, including a 5-year bond.

Chief Executive Manolis Panagiotakis has said that declining profit was making issuing debt harder, but was confident that PPC would repay a 350 million euro bond due in May.

PPC was not immediately available for comment.

[Reuters]