Milbank Advises Public Power Corporation S.A. on the First Sustainability-Linked High Yield Bond in Europe

Milbank LLP advised Public Power Corporation S.A. (“PPC”), a public company listed on the Athens Exchange, in connection with its debut offering of €650 million 3.875% sustainability-linked senior notes due 2026 (the “Offering”). The Offering represents the first high yield bond issuance in Europe linked to a sustainability performance target and the first direct bond issuance by a Greek listed company in the international capital markets.

The landmark offering links the initial 3.875% coupon to a 40% reduction in PPC’s CO₂ emissions by December 31, 2022. Failure to achieve the sustainability performance target will result in a coupon step-up of 0.500% from March 30, 2023.

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. The team also included London Tax partner Russell Jacobs and associate Cosmos Fung.