Public Power Corporation (PPC) on Thursday announced that creditor banks approved a debt refinancing agreement worth 1.4 billion euros. In an announcement, PPC said that the biggest part of the debt will be refinanced with lower interest rate and with a provision for a further reduction if there were extraordinary repayments with proceeds from the selling of assets (such as the selling of lignite units). The agreement also envisages a new credit line worth 200 million euros to be used by PPC if necessary.
More specifically, PPC said the refinancing agreement covers an existing syndicated bond loan worth 1.2 billion euros with a new five-year unsecured bond. The bond will carry a 5.8 pct interest rate. The agreement also covers the refinancing of an existing syndicated bond loan worth 175 million euros with a three-year bond, carrying an interest rate of 5.75-5.80 pct.