Milbank Advises Public Power Corporation S.A. in Its Offering of €500 Million Sustainability-Linked Bonds

Milbank LLP advised Public Power Corporation S.A. (“PPC”), a public company listed on the Athens Exchange, in connection with its offering of €500 million 3.375% sustainability-linked senior notes due 2028.

This was the third high yield bond offering for PPC this year, resulting in aggregate proceeds of approximately €1.3 billion and making PPC one of the most significant participants in the Greek high yield market. The initial 3.375% coupon on the notes is linked to a 57% reduction in PPC’s CO2 emissions by December 31, 2023. Failure to achieve the sustainability performance target will result in a coupon step-up of 3.875% from July 31, 2024.  PPC was also a European market mover with the first issuance of sustainability-linked notes in Europe earlier this year, placing it at the forefront of an increasingly significant European market trend.

PPC is the largest generator and supplier of electricity in Greece, as well as the sole owner of the electricity distribution network through its subsidiary Hellenic Electricity Distribution Network Operator S.A., providing electricity to approximately 6.1 million end-customers. For more than 70 years, PPC has been at the forefront of Greece’s power industry and an integral part of the country’s process of electrification. PPC is publicly listed on the Athens Exchange with a market capitalization of approximately €2.1 billion.

The Milbank team was led by European Leveraged Finance/Capital Markets partner Apostolos Gkoutzinis and special counsel Trevor Truman, with associates Iakovos Anagnostopoulos and Chara Makrygianni.