PPC is the largest electricity supplier in Greece, and still operates several coal power plants. Its decarbonisation strategy was thrown off-track due to energy security concerns, and this caused it to miss its 2022 SLB target.
On 24 Jan 2024 it held a capital market day, with some reporting on 2023 performance. This included confirmation that 0.5GW of coal-generation capacity was closed in 2023, re-starting its decarbonisation trajectory after a one-year delay.
Reporting was insufficient to confirm meeting the 2023 SLB target, however it looks more likely. This should translate into a lower probability of the SLB paying a step-up coupon, and therefore a widening of the bond spread.
Since the announcement the PPC bond curve has flattened, which seems counterintuitive. We conclude the market may not yet have digested this information.
