Public Power Corp. to raise $235 million from sale of unpaid bills to JP Morgan

Greece’s biggest electricity utility, Public Power Corp. (PPC), said on Wednesday it has finalised a deal to sell off unpaid bills to investment bank JP Morgan that will raise about 200 million euros ($235 million).

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.

Sources told Reuters in June that PPC, which is 51% state-owned, was close to selling off the bills.

In a stock market filing on Wednesday, PPC said it had signed contracts to sell bills in arrears of up to 60 days.

Finacity Corporation arranged the transaction.

PPC said last month it had also finalised the terms for securitising a second tranche of bills worth 1.7 billion euros that are in arrears by more than 90 days, seeking to raise 300 million-350 million euros.

[Reuters]