ERB Greece bail-in sub debt (project Nephele III)

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

On 28 April 2021, the EBRD invested EUR 50 million (10% participation) in a senior preferred bond issued by Eurobank S.A. ('ERB') as a part of a public benchmark issuance of EUR 500 million listed on the Luxembourg Stock Exchange. On 7 September 2021, the EBRD invested another EUR 27 million (5.4% participation) in the second senior preferred bond issuance of ERB under the same programme.

On 29 November 2022, under the same programme, the EBRD invested EUR 10 million (3.3% of the issuance amount) in subordinated ('Tier 2)' bonds issued by Eurobank Ergasias Services and Holdings S.A. ('ERB Group') as part of a public issuance of EUR 300 million to be listed on the Luxembourg Stock Exchange. The bonds have a 10 year maturity with a call option on the fifth year (10NC5 structure).

Project ID 53517

Status Signed

Location

Greece

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Lydia Kekridou
FundingOrigination@eurobank.gr
+30 210 3718 771
https://www.eurobankholdings.gr/en
8, Othonos Str., 10557, Athens, Greece

Project ID 53517

Status Signed

Location

Greece

Business Sector

Financial Institutions

Notice Type

Private

Approval Date

16 Dec 2020

Disclosure date

08 Dec 2022

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

ERB Greece bail-in sub debt (project Nephele III) (Greek) (PDF, 0.69MB)

Project description

Project objectives

The project supports the resilience and regulatory compliance of a systemically important institution in the country and contributes to the capital market development of Greece. The project also aims to support strong green targets with 150% of the EBRD's investment to be allocated to finance green projects in line with EBRD's Green Economy Transition ("GET") eligibility criteria.

Transition impact

ETI Score:64

expected transition impact stems from the contribution to the Resilient and Green qualities:

Resilient: i) supporting ERB Group to gradually build its bail-in-able funding base in a volatile environment and ultimately contributing to its regulatory compliance, ii) helping to further diversify its funding sources. The project also contributes to the capital market development through supporting expansion of the market of bail-in-able instruments for Greek banks.

Green: ERB Group will allocate 150% of EBRD's investments for financing green projects in line with EBRD's ("GET") eligibility criteria and aims to promote the green agenda in Greece.

Client information

EUROBANK ERGASIAS SERVICES AND HOLDINGS SA

is one of the largest banking groups in Greece in terms of total assets with a market share of ca. 20%. Its core business is concentrated in Greece and it is a well-recognised bank in South-Eastern Europe with presence in Bulgaria, Cyprus and Serbia. Eurobank Ergasias Services and Holdings SA is listed on the Athens Stock Exchange.

EBRD Finance Summary

EUR 87,000,000

Total project cost

EUR 1,300,000,000

Additionality

The Project depicts strong additionality by supporting the ERB Group to: i) tap the markets in a post-pandemic environment destabilised by inflationary pressures and the war on Ukraine; ii) widen the stable investor base by sending a positive signal to the markets, and iii) encouraging ERB Group's green agenda by promoting financing of green projects in line with the EBRD's GET criteria .

Environmental & Social Summary

Category FI (2019 ESP). ERB is an existing client and well known to the EBRD through previous exposures. Under the existing exposures, ERB is in compliance with the EBRD's Performance Requirements 2, 4 and 9. ERB will continue to comply with these PRs, implement EBRD's applicable E&S Risk Management Procedures including the specific eligibility criteria for wind, solar, hydro, geo-thermal or biomass projects, as relevant; and continue to submit annual environmental and social reports to the EBRD.

Technical Cooperation and Grant Financing

N/A

Company Contact Information

Lydia Kekridou
FundingOrigination@eurobank.gr
+30 210 3718 771
https://www.eurobankholdings.gr/en
8, Othonos Str., 10557, Athens, Greece

Implementation summary

N/A

PSD last updated

08 Dec 2022

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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ERB Greece bail-in sub debt (project Nephele III)

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

Implementation summary

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)