Privatization fund, assets holding company express support for PPC share capital increase

Greece’s privatization agency (HRADF), as well as its parent entity, the Hellenic Corporation of Assets and Participations (HCAP), on Thursday evening announced their support for a same-day decision by the Public Power Corp. (PPC) to raise funding through a 750-million-euro share capital increase.

HRADF and HCAP hold a 51-percent stake of PPC, the dominant electricity provider and producer in Greece and the one-time power monopoly in the country. The pending share capital increase will mean that state ownership in the utility will fall under 50 percent.

According to an announcement by the privatization and asset holding agencies, “Greece is making best-in-class progress in energy transition across Europe, and PPC is optimally positioned to play a critical role in the country as well as in the broader region. The new PPC, with focus on green energy, enhanced efficiency and strengthened balance sheet to further support Greece’s energy needs, benefit consumers, improve security of supply, and protect the environment.”

HCAP and its subsidiary HRADF – both mandated by memorandum bailouts with institutional creditors – were created to protect public interests and create long-term value for the Greek state.