PPC is on the investment radar of Norges Bank Investment Management as Business Insight of BnB Daily reports.
Already invested in 36 companies listed on the Athens Stock Exchange, the Company's inclusion in the watch list is not just another option among the many it has in the Greek market, and one of the hundreds it has in the markets of 70 countries. It is a game changer, according to analysts at two Greek brokerages that follow PPC, and that is because the change in the Norwegians' stance is due to the change in the listed company's energy mix.
In the latest recommendation of NBIM, which invests internationally in companies that have adopted environmentally friendly policies, there is an explicit reference to the... greening of PPC, with all that this may mean both for the company and for the broader energy sector. The action of the fund's staff is obviously related to the shift that the Stasi administration is methodically carrying out in the context of carbonisation and transformation. In practice, the policy of the head of the listed company was distinct when he acquired the Enel subsidiary and when he acquired Maquarie's RES portfolio—both in Romania—the synergies with Copelouzos Group, Motor Oil e.t.c.
It was precisely this methodical transformation of the group that led the Norwegians to include it in a portfolio with 8 groups, the size of a Southern Co., THNM Energy, or JSW, Eneva, TransAlta Corp., BHP Group, and Capital Market. It is no small thing, then, to be included alone in an investment list with international names from the US, Poland, Brazil, Australia, and Canada. The selection of NBIM as an investor, whether or not it eventually acquires a 1%-2% stake in the company, is a clear vote of confidence in the management's work so far, but above all in its future plans.
Very likely (always according to these 2 analysts), the fund will acquire a shareholding in PPC, alongside shareholder-owners CVC Capital, Wellington, Helikon, Fidelity, Black Rock, Oak Hill, EBRD, e.t.c. Most importantly, it could act as a precursor to other investment portfolios investing in eco-friendly businesses. Since "carbon" is a selection criterion (or not) for Norges Bank's fund, it will almost certainly be a passport for the entry of other investment portfolios. What does the potential entry of a fund using the risk value method mean? In principle, lower "pricing" costs, a higher rating, and more favourable financing (borrowing) terms from the financial system—in the end, it diversifies the investment mix, making one company (e.g., PPC) more eligible than another in the sector.
Practically? (Potentially) larger capital inflows, expanded free float, limited presence of aggressive players (hedge funds), i.e., more stable free float/greater resilience in times of crisis. Of course, the result (in PPC) did not come overnight. The once one of the most polluting companies in Europe has reached a 90% ESG Transparency Score (of the ATHEX ESG of EXAE) with the prospect of even greater CO2 emission reductions (by 2026). But the (potential) benefit is manifold, as NBI's energy, if and when it acquires a shareholding in m.k. of PPC, could concern the broader energy sector, i.e., listed companies with a green footprint (Metlen, Motor Oil, HelleniQ Energy, Terna Energy).
The recent S&P report also details how PPC management's investment decisions have affected the company's carbonization indicators in addition to its profitability, such as the Evryo Group's purchase of the Macquarie funds-owned Romanian wind portfolio.
