Billions of dollars in investments are flowing into Greece’s energy sector as the country tries to establish itself as a vital energy transit hub for Central, Eastern, and Southeastern Europe as the European Union prepares to completely phase out Russian gas imports by 2027.
According to To Vima Finance, over €23 billion (~$26.3B) from major international investment funds and high-profile global entities including BlackRock, Capital, Covalis, QIA and K Group has poured into Greece’s energy sector over the past one month alone as they look to secure positions in the country’s buzzing energy sector.
Last month, Public Power Corporation (PPC), Greece’s main power utility, officially finalized a landmark share capital increase, securing a total of €4.25 billion through new shares, alongside €250 million from a secondary treasury placement for a combined €4.5 billion. Bids from global institutional investors ultimately exceeded €18 billion, marking the largest order book ever recorded on the Athens Stock Exchange.
The Greek state contributed €1.3 billion to maintain its 33.4% blocking stake, while CVC Capital Partners (via Aeolus Holdings) invested €1.2 billion. Major international funds including BlackRock, Vanguard, Norges Bank and the Qatar Investment Authority (QIA) also participated.
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The capital raise will fuel PPC’s €24 billion investment plan through 2030, transitioning the company into a clean energy and technology conglomerate with regional expansion across Southeastern Europe and significant investments in data centers and distribution networks.
Recently, Greek grid operator IPTO (ADMIE) successfully concluded a €1 billion share capital issue, with the 14x oversubscription showcasing massive global demand. The Greek government contributed €510 million (partially funded by the Recovery and Resilience Facility) to maintain its 51% stake; State Grid of China: Invested €240 million to maintain its 24% ownership while the public tranche raised €250 million, yielding €3.5 billion in total bids.
Meanwhile, Greece’s Motor Oil’s (Hellas) €400 million, 3.75% senior unsecured bond issue was a massive success, drawing over €1.4 billion in bids from international investors. Headquartered in Maroussi, Greece, Motor Oil is a leading Greek petroleum refining and energy company. It operates the largest privately-held industrial complex in the country and is a key market player across Southern Europe and the broader Mediterranean region.
By Alex Kimani for Oilprice.com
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