In recent transactions involving Greek companies, the interest rate has been set in the region of 6.3 percent with the provision of income from important assets acting as collateral. Management of the debt remains with PPC in cooperation with a partner.
Essentially, with the two securitization transactions (60 and 90 days) PPC is the first company in Greece that is not selling overdue debts, but drawing liquidity without guarantees as management of the loans remains with the company. Therefore, any improvement to collection rates will be an additional benefit to PPC.
PPC’s efforts to securitize overdue debts started in November 2017, however, there was no offer until September 2019. Its new management actively dealt with the issue and within a few months managed to conduct both deals totaling 500-600 million euros, attracting international investment interest and a favorable interest rate.
Conducting a transaction with such a large international investor also makes it easier for foreign institutional investors to put PPC shares on their radar.