Hellenic Petroleum Eurobond

Location:

Greece

Project number:

48970

Business sector:

Power and energy

Notice type:

Private

Environmental category:

B

Target board date:

08 Mar 2017

Status:

Signed

PSD disclosed:

06 Feb 2018

Project Description

The EBRD subscribed the amount of EUR 28.3 million to the EUR 74.5 million senior unsecured notes issued by Hellenic Petroleum Finance PLC, a wholly owned subsidiary of Hellenic Petroleum S.A ("the Company"). The new notes form a single series with the Company's existing EUR 375 million notes maturing in October 2021. The proceeds of the new notes purchased by the EBRD will finance Hellenic Petroleum's pipeline of investments in renewable energy, which is one of the Company's strategic priorities.

Project Objectives

The Bond proceeds will be used for general corporate purposes, more specifically the implementation of part of the Company's capital investment in renewable energy sources.

Transition Impact

The transaction is the first project under the Greek Renewable Energy Framework. The project aims to help Greece meet its renewable energy targets, as well as to facilitate the country's planned transition to a more market-based support mechanism for the development of renewable energy.

Client Information

HELLENIC PETROLEUM FINANCE PLC

Guarantor: Hellenic Petroleum S.A.

The Company is a diversified energy group, active in Greece and Southeast Europe. Its range of activities includes refining and trading of petroleum products, fuels marketing, petrochemicals, power generation and trading and renewable energy sources.

EBRD Finance Summary

EUR 28,302,000.00

Subscription to a Bond in the amount of EUR 28.3 million.

Total Project Cost

EUR 450 million

Environmental and Social Summary

Categorised B (2014 ESP). Environmental and Social Due Diligence ("ESDD") was undertaken by the Bank's environmental and social specialists. This included a review of Hellenic Petroleum Group's ("HP Group") corporate environmental and social ("E&S") policies, which specifically focused on assessing HP Group's Renewable Energy Sources ("RES") subsidiary's E&S management systems and existing renewable energy operations. In compliance with capital market transaction rules, the ESDD was undertaken by reviewing publicly available information and meeting with the HP Group's Corporate Social Responsibility ("CSR"), Environmental, Health & Safety ("EHS") and RES teams to assess its capacity to develop and implement the PV projects in accordance with the Bank's Performance Requirements ("PRs").

The review of the planned PV solar power investment portfolio comprising a number of PV projects confirmed that the investments are developed in line with national and EU environmental requirements. All of these PV projects are located in non-sensitive areas and would be categorised B if directly financed by the Bank. Most of the PV projects are small and developed on brownfield sites. E&S risks and impacts of these projects are low and they will result in significant environmental benefits and greenhouse gas ("GHG") savings.

The ESDD showed that the Company has sufficient resources and capacities to implement the PV projects in compliance with the Bank's PRs. It has adopted a proactive EHS and CSR culture and has a well-developed corporate structure in place to implement its corporate sustainability policy and commitments. These include adherence to the most recent EHS standards, applying modern methods in human resources management and training and educating its employees on safety and environmental issues as well as actively engaging with the local communities and responding to their concerns. The HP Group maintains a comprehensive policy for health, safety, environment and sustainable development and publishes comprehensive reports on its sustainability performance and issues through annual CSR reports. The Group is currently developing a renewable energy portfolio in various development stages. Additional information on the Company and its CSR reports are available on the corporate web sites.

The Bank has signed a Framework Agreement, including an Environmental and Social Action Plan ("ESAP"), with HP Group. The ESAP has been developed on the basis of the findings of the ESDD and it determines the necessary measures for complying with the Bank's requirements, including a commitment to fully implement corporate EHS and CSR procedures to the renewable projects and develop and structure projects in compliance with the Bank's PRs.

Technical Cooperation

None.

Company Contact Information

Vasilis Tsaitas
ir@helpe.gr
+30 210-6302212
www.helpe.gr
8A Chimmaras Str. Maroussi, 15125 Athens

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