Public Power Corporation S.A. (PPC), Greece’s largest electricity supplier, has recently issued a €775 million green bond under the “5NC2 Green SUN” structure, marking a significant step in its sustainable finance strategy. The bond carries a fixed annual coupon of 4.25% and is set to mature in 2030. This issuance primarily aims to refinance PPC’s existing €775 million senior sustainability-linked bonds due in 2026, which currently bear a slightly higher interest rate of 4.375%.
Beyond refinancing, the proceeds from the 5NC2 Green SUN bond will be utilised to support PPC’s Green Financing Framework, which funds and refinances eligible green projects. These projects include renewable energy installations and energy efficiency initiatives, aligning with PPC’s broader ambitions to decarbonise its energy portfolio. The company is actively transitioning away from lignite plants and investing in renewable energy capacity, exemplified by its ongoing construction of solar parks, such as a 165 MW facility in Stara Zagora, Bulgaria, and plans for an 88 MW solar park in Vedrare, Bulgaria.
PPC’s CEO, Stassis Vasileiou, emphasised the importance of the bond issuance, stating, “This green bond represents a crucial milestone in PPC’s journey towards a sustainable energy future. It not only strengthens our financial position but also underscores our commitment to environmental responsibility and the energy transition. We are proud to lead the way in Southeastern Europe by mobilising capital that directly supports renewable energy projects and helps reduce our carbon footprint.”
This bond issuance reinforces PPC’s commitment to sustainable development and its pivotal role in the energy transition within Southeastern Europe. By refinancing existing debt with more favourable terms and securing capital dedicated to green projects, PPC strengthens its financial standing while progressing towards its environmental goals. The 5NC2 Green SUN bond thus exemplifies how large utilities in the region are leveraging green finance instruments to facilitate cleaner energy production and support climate objectives.
