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Φώτο: ΔΕΗ

Sustainability-linked PPC bond draws strong demand

Initial Pricing Thoughts for the bond yield was set between 4% and 4.25 percent, while eventually the high demand pushed the yield to 3.875 percent.

PPC's bond issue has been met with strong investor demand, drawing offers in excess of 3 billion euros for a targetted amount of 500 million euros, pushing the interest rate below 4 percent.

Initial Pricing Thoughts for the bond yield was set between 4% and 4.25 percent, while eventually the high demand pushed the yield to 3.875 percent. In terms of the size of the issue, demand exceeded the amount called for six times, leading PPC to increase the amount from 500 to 650 million euros.

Earlier, BusinessDaily reported that demand exceeded supply four times, as bids reached 2 billion euros.

The bond has a five-year duration (expires in 2026) and is linked to sustainability goals (sustainability-linked bonds). Proceeds from the issue will be used to repay an existing loan, as well as for general corporate purposes.

Based on the special features of the issue, the company is committed to reduce CO2 emissions by 40 percent from 23.1 million tons in 2019 to 13.9 million tons in 2022, otherwise the issue coupon will increase by 50 basis points.

The bonds will be listed on the Dublin Stock Exchange for trading on the International Stock Exchange. PPC's previous entry into the markets took place in 2014, from which 700 million euros were raised. Of this, 500 million euros for a 5-year period was raised at an interest rate of 5.5 percent.
 

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