Greek utility Public Power Corporation (PPC) has agreed to acquire all of the equity interests held by Italian energy giant Enel and its subsidiaries in Romania for €1.26 billion (US$1.35 billion).

Enel is the second-largest power distributor in Romania, controlling 35% of the market.  Its Romanian subsidiary Enel-X is developing an electric vehicle charging network and offering energy services.

The project pipeline includes seven wind farms and 11 solar parks with total capacities of 2.3 gigawatts and 3.1GW, respectively. This adds to Enel’s operational green energy generation portfolio, which comprises eight wind farms and four solar parks with total installed capacities of 499 megawatts and 36MW, respectively.

PPC intends to finance the acquisition with a combination of debt and cash. This includes €800 million of committed debt financing comprising a €485 million five-year loan facility from Greek banks and a €315 million bridge facility through international banks.

Milbank advised PPC on the acquisition, which is expected to close by the third quarter of 2023.

PPC is a leading generator and supplier of electricity in Greece providing electricity to approximately 5.7 million end-customers. In addition, it holds a 51% interest in Hellenic Electricity Distribution Network Operator, which is the sole owner and operator of the electricity distribution network.