We provide financing for landmark initiatives in the area of renewable energy sources (RES), sustainable infrastructure and environmentally friendly solutions. A strategic priority, which underlines our will and ability to finance sustainable development and landmark projects in Greece, is to promote clean energy, facilitate economic growth and reinforce social cohesion.
Sustainable landmark projects
We participate in the financing of Phase A for the development of Hellinikon. It is a groundbreaking project for Athens, with significant benefits for the Greek economy, society and the environment. Part of our financing for Phase A will be directed to the development of public benefit buildings, including cultural institutions, welfare and health centres, and smart green buildings.
Crete-Attica electrical interconnection
A flagship energy transition project for Greece totalling €1 billion, putting into practice a vision of decades. We are the main sponsor of the electrical interconnection of Crete to Attica, the largest energy project in Greece in 2020 and one of the largest investments in Europe. This is a strategic agreement between Eurobank and Ariadne Interconnection, a 100% subsidiary of ADMIE.
The interconnection integrates isolated regions (islands) with the mainland electricity grid, securing reliable and stable power supply. It also allows for the development of renewable-energy power plants on the islands to gradually replace fossil fuel units and move forward to achieving Greece’s energy transition and sustainability goals.
Other benefits include:
- Further development / expansion of the Hellenic Electricity Transmission System (HETS).
- Mitigation of high electricity production costs paid by consumers in Greece.
- Drop in unemployment.
Eurobank is participating in the financing with €200 million.
Renewable energy sources (RES)
Renewable energy sources are a sector with strong momentum and significant growth prospects, which has a prominent position in our strategy. Until the end of 2020, we financed sustainable projects totalling €0.7 billion.
In the area of photovoltaics, we are acting as co-Mandated Lead Arranger, along with the National Bank of Greece, in a project involving up to €105 million in Syndicated Bond Loans to be granted to special purpose vehicles (SPVs), 100% owned by PPC Renewables SA.
Said SPVs will undertake to develop, construct and operate 3 photovoltaic (PV) parks with a total installed capacity of 230MW in Kozani, Western Macedonia.
Supporting the development of the sustainable bond market in Greece, we participate in all major transactions, with exceptional deal execution performance, as well as strong distribution and placement capacity.
We acted as joint-lead arranger for €3.3 billion in green and sustainable bonds issued by Greek corporates:
- Gek Terna SA (€300 million, 2.30% Sustainability-linked senior notes due in 2028, listed in the ASE) – This was the first fixed-income transaction in the Greek market to be certified as sustainability bond with its coupon linked to CO2 emissions reduction targets. The issuer will mainly finance infrastructure, energy, concessions or real estate projects, or participate in companies with similar activities. Eurobank acted as sole Advisor to the issue.
- Noval Property REIC (€120 million, 2.65% Green senior notes due in 2028, listed in the ASE) – An inaugural issue by a company focusing particularly on the development of industrial properties and new office buildings with LEED certification. Proceeds will finance green investments and refinance outstanding debt related to such projects.
- Prodea Investment REIC (€300 million, 2.30% Green senior notes due in 2028, listed in the ASE) – The first real-estate-investment-related issue in the ASE by a leading company with significant green asset acquisitions in Greece and abroad. Funds raised will refinance outstanding debt for green investments or finance new properties in compliance with the Green Bond Framework.
- Terna Energy Finance SA (€150 million, 2.60% Green senior notes due in 2026, listed in the ASE) – This was the first fixed-income transaction in the Greek market to be certified as green (climate) bond. Proceeds mainly refinanced the acquisition and construction cost of wind farms in Greece and in the USA.
- Ellaktor Value Plc (€670 million, 6.375% Green callable senior notes due in 2024) – This was the largest high-yield green bond issue in Greece and Europe in 2019. The issuer accessed international portfolios and attracted funds to finance and refinance projects under the wind and solar categories.
- PPC SA (€775 million, 3.875% Sustainability-linked callable senior notes due in 2026) – This was the first ever high-yield sustainability bond in EUR. It also marked the company’s return to institutional debt-capital markets for the first time since 2014.
- Mytilineos SA (€500 million, 2.25% Green senior notes due in 2026) –This transaction marks the second issue in international capital markets for the company and its debut Green issue, underlining the issuer’s strong commitment to sustainability and ESG principles. Proceeds will finance projects in line with the issuer’s Green Bond Framework.
- PPC SA (€500 million, 3.375% Sustainability-linked callable senior notes due in 2028) – Another successful benchmark issue for a company aiming to significantly transform its generation capacity mix towards lower carbon intensive technologies by 2023.
Inclusion and entrepreneurship
Cosme Programme for the Competitiveness of Businesses and SMEs
The Cosme programme, with a total budget of €2.3 billion for 2014-2020, aims to improve the competitiveness of enterprises, especially SMEs. Specifically, the Cosme Programme is supported by the Cosme Loan Guarantee Facility financial tool, which provides guarantees to financial institutions, so they may in turn increase their financing to SMEs with reduced collateral requirements.
Financing in this context is made possible thanks to the guarantee provided by Cosme and the European Fund for Strategic Investments (EFSI), which was established as part of the Investment Plan for Europe. The aim of the EFSI is to contribute to financing and carrying out production investments within the European Union, and to secure increased access to financing.
Since signing the original agreement on 16/09/2016, and up until the end of 2020, we have used the Cosme programme to finance small and medium businesses in all the eligible sectors to the amount of €609 million.
Partnership with the European Investment Bank (EIB)
We are participating in a European Investment Bank (EIB) programme amounting to €500 million to support female entrepreneurship in Greece.
Through this new programme, the EIB is supporting business investments that aim to reinforce the role of women in business for the first time in Greece.
It is also contributing to addressing youth unemployment, as a continuation of the hundreds of jobs created for young individuals through a previous programme.
Commenting on the initiative, the Eurobank CEO, Mr Fokion Karavias, stated, “Eurobank is continuing its successful and long-term cooperation with the European Investment Bank, as part of its strategy to support Greek entrepreneurship and employment. This new agreement confirms the interest of the EIB to support young people in the job market and focuses on empowering women in business, as this is the first time it is supporting business investments for women in Greece. These are two extremely significant aspirations, due to the increased level of difficulty these two categories have been facing in accessing the job market, especially during the years of the crisis. Such initiatives are necessary, as they create opportunities for female entrepreneurship to grow, while they enrich and support the Greek business ecosystem, at a time when the Greek economy is faced with challenges. ”
COVID support measures
We are participating in the collective efforts to support the economy, so it can successfully address the problems caused by the pandemic. Making the most of the measures and opportunities available, we boost the liquidity of Greek businesses with favourable terms, aiming to reinstate economic activity as soon as possible and support employment.
Greek Tourism pandemic support
Eurobank, the Bank of Greek Tourism, activated a new package of measures, to restart the Greek hotel and tourism industry during the pandemic crisis. Through its initiatives, Eurobank has already provided financing of €500 million.
The Eurobank CEO, Mr Fokion Karavias, stated, "Eurobank sets as an absolute business priority to play a leading role in supporting businesses and restarting the economy. Eurobank is the Bank of Greek tourism. Not just for sunny days. We are the Bank of Greek tourism even in difficult times."
The Deputy CEO and Head of Group Corporate and Investment Banking of Eurobank, Mr Konstantinos Vassiliou, said, "As the Bank of Greek Tourism, Eurobank pioneers and strengthens the protection network for business customers in the hotel industry, not only for this difficult year, but also for 2021, an extremely critical year for the medium-term recovery dynamics of the industry."
Agreement with ETEAN
In 2019, we focused especially on the increased liquidity needs of SMEs. We signed an agreement with the Hellenic Fund for Entrepreneurship and Development (ETEAN SA) for loans with favourable terms to micro-enterprises and SMEs through the Business Financing – Entrepreneurship Fund (TEPIX) II.
This agreement was then extended and became one of the main levers for addressing the impact of the pandemic at the beginning of 2020.
The financing we provided under this agreement amounted to €386 million.
COVID-19 Guarantee Fund
In partnership with the Hellenic Development Bank (HDB), we are participating in the COVID-19 Guarantee Fund, granting new loans in the form of working capital to the amount of €1.28 billion. All loans are guaranteed by the HDB.