- EBRD supports PPC in Greece with working capital during coronavirus pandemic
- €160 million loan to ensure stability of energy sector and support decarbonisation
- Engagement under Bank’s Vital Infrastructure Support Programme
The European Bank for Reconstruction and Development (EBRD) is providing a senior unsecured loan of up to €160 million to Public Power Corporation S.A. (PPC), the largest power producer and electricity supplier in Greece, to address the impact of the coronavirus pandemic.
The facility will support PPC’s working capital needs at a time of customer payment volatility following the outbreak of the crisis. It will also strengthen the resilience of the electricity sector as a whole by ensuring the stability of essential utility supplies and maintaining the momentum towards decarbonisation.
The loan comes under the EBRD’s Vital Infrastructure Support Programme to ensure the provision of vital services in its countries of operations confronted with acute pressure from the coronavirus pandemic.
The initiative is part of the Bank’s overall response to Covid-19. In the period 2020-2021, the EBRD expects to dedicate the entirety of its business investment of up to €21 billion to tackle the challenges posed by the crisis.
PPC is the largest electricity generator and supplier in Greece. It is also the owner of the country’s electricity distribution network and the sole provider of electricity to those Greek islands that are not connected to the national network.
The company has been listed on the Athens Stock Exchange since 2001 and its main shareholder is the Greek State (51.1 per cent), through the participation of the Hellenic Republic Asset Development Fund and the Hellenic Corporation of Assets and Participations.
PPC is central to Greece's efforts to implement an ambitious decarbonisation strategy, aiming to close all of its existing coal-fired power plants by the end of 2023.
The EBRD is helping PPC to establish an action plan to implement recommendations from the Task Force for Climate related Disclosure (TCFD), by identifying key climate risks and opportunities and developing an associated plan to mitigate and adapt to these risks. The TCFD is an initiative which was set up by the Financial Stability Board (FSB) to develop recommendations for more effective climate-related disclosures.
Andreea Moraru, EBRD’s Regional Head of Greece and Cyprus, said: “We are very proud to be supporting PPC during these uncertain times. PPC, and the Greek energy sector more generally, have embarked on a remarkable strategic reorientation away from coal and towards a green and sustainable model. This is one of the most ambitious energy transitions of any European country and PPC is central to those efforts. This loan is part of EBRD’s commitment to supporting vital infrastructure providers in weathering the immediate impacts of the Covid-19 crisis while sustaining, and accelerating, their long-term efforts to address the climate change crisis.”
PPC Chairman and CEO, Mr. George Stassis, said: “The extraordinary conditions that we faced due to Covid-19 pushed us to change our business operation in order to adapt to the new environment and to redefine the relationship with our customers, a process which we had already initiated in previous months. Despite initial disruptions to our liquidity at the outset of the pandemic in March, we have succeeded in regaining pre-Covid levels since May, thanks to introducing new ways of communicating to and serving our customers. In any case, there is no room for complacency. We are closely monitoring the situation and we aim to shield the company against the possibility of a new pandemic wave. The EBRD has supported us in this effort from the beginning.”
The EBRD started investing in Greece on a temporary basis in 2015 to support the country’s economic recovery. To date, the Bank has invested over €3.5 billion in more than 60 projects in the corporate, financial, energy and infrastructure sectors of the Greek economy.