GEK Terna 2025 Bond

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

The EBRD invested EUR 50 million in the EUR 500 million, 7-year senior unsecured bond issued by GEK Terna S.A. (the "Issuer" or the "Company") and listed on the Athens Stock Exchange ("ASE").

The overall bond proceeds will be used to finance Issuer's group business activities, among else, in the infrastructure and energy sectors, support acquisitions, and/or refinance the Issuer's and/or its subsidiaries debt and issuance costs of the bond.

The proceeds of the EBRD participation will be dedicated to renewable energy generation, battery energy storage systems, social infrastructure, and water/wastewater investments in Greece, Romania, Albania and Kosovo (the "Project").

Project ID 56782

Status Signed

Location

Regional

Business Sector

Municipal Infrastructure

Notice Type

Private

Project timeline

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

Company Contact Information

Alexandros Skordos
askordos@gekterna.com
+30 210 6968000
+30 210 6968099
http://www.gekterna.com/
85 Mesogeion Ave., Athens 11526, Greece

Project ID 56782

Status Signed

Location

Regional

Business Sector

Municipal Infrastructure

Notice Type

Private

Environmental Category

IESE

Approval Date

24 Sep 2025

Disclosure date

02 Oct 2025

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.

Project Description

The EBRD invested EUR 50 million in the EUR 500 million, 7-year senior unsecured bond issued by GEK Terna S.A. (the "Issuer" or the "Company") and listed on the Athens Stock Exchange ("ASE").

Project Objectives

The Project aims to support the Company's growth in Greece and South-Eastern Europe by financing renewable energy, energy storage, social infrastructure, and water/wastewater investments, while also strengthening Greece's local corporate bond market through a sizeable issuance on the ASE. It will also support channelling of funds to green eligible investments and promote private sector participation in public infrastructure projects, including those procured under concessions and public-private partnerships ("PPPs"), while promoting inclusive and gender responsive policies and practices.

Transition Impact

ETI score: 63

The Project is assessed as contributing to the TI objectives under the Inclusive and Competitive qualities. Inclusive impact will be delivered through promotion of human capital development and equal opportunities practices, including strengthened internship programmes and targeted outreach initiatives to support women's representation across Company's workforce. The share of women interns and employees in the Company are expected to increase. Competitive impact will be achieved by supporting private sector participation in PPPs in Greece and beyond, including potentially sub-projects prepared under the EBRD-supported Greek PPP Preparation Facility ("GPPF").

Client Information

GEK TERNA SA

GEK Terna S.A. is a leading infrastructure group incorporated in Greece, active in concessions, energy and construction. The Company is listed on the ASE.

EBRD Finance Summary

EUR 50,000,000

Total Project Cost

EUR 500,000,000

Additionality

The Bank's additionality is derived from (i) the Bank's investment that facilitates a successful book building process and supports the Issuer in achieving a sizeable issuance in ASE, (ii) standard setting as EBRD's engagement will ensure that the Project will be implemented in line with international environmental best practice, and (iii) the Company's institutional commitment to strengthen equal opportunity practices.

Environmental and Social Summary

Categorised B (2024 Environmental and Social Policy ("ESP")). The Project is a capital markets transaction and the Bank's environmental and social due diligence ("ESDD") has been limited to a review of publicly available documents, a review of the Company's corporate Environmental and Social ("E&S") Management System ("ESMS") against the Environmental and Social Requirements ("ESRs") and progress reporting under the ESAP of the previous bonds (EBRD subscription in GEK Terna SLB bond 2021 project).

The level of available information and ESDD has allowed for appropriate assessment of risks in accordance with the Bank's ESP 2024 for this Project since the EBRD use of proceeds will be limited to renewable energy, energy storage, social infrastructure, water and wastewater sub-projects excluding Category A projects. The ESDD concluded that the Company has adequate institutional capacity to implement the Bank's ESRs within its project. Overall, GEK Terna has a good compliance record, satisfactory progress under existing project ESAP, and has recently enhanced its corporate environmental, health and safety ("EHS") management systems including undertaking for climate risk scenario analysis. It also published 2024 Group Sustainability report, which is aligned with the Corporate Sustainability Reporting Directive ("CSRD") requirements. The Company's integrated ESMS is based on a comprehensive policy framework with dedicated teams in place.

At the project level, the ESMS is operationalised through established procedures including for initial E&S risk screening aligned with (relevant national legislation, international standards, and sector-specific benchmarks); risk-based ESDD which encompasses site visits, stakeholder consultations (when appropriate), and detailed analysis of potential impacts on biodiversity, land use and cultural heritage, labour conditions, health and safety ("H&S"), and surrounding communities and incorporation of mitigations into Environmental and Social Management Plans ("ESMPs") and associated procedures. Mitigation actions are tracked through internal audits, regular reporting, and an annual review process that involves senior management and feeds into the Group's continuous improvement cycle. Corporate training programs extend to sub-project teams and contractors, ensuring broad awareness and competencies related to E&S management. E&S performance indicators are regularly monitored at the project level. Stakeholder engagement is formalised and ongoing at both the corporate and project level and a corporate level external grievance mechanism is in place, with provisions for anonymous reporting. Risk screening and due diligence processes need to be updated to ensure recent ESP revisions on social (ESR1, 5 and 8) and biodiversity (ESR6) aspects are fully integrated and resulting assessments and mitigations are implemented in projects receiving the proceeds of the EBRD investment.

The supply chain management system includes a procurement policy which amongst others requires adherence to the Company's comprehensive Human Rights and HSE policies and Code of Ethics and Conduct; procedures for supplier and contractor selection; risk-based due diligence and subsequent monitoring; contractual provisions for compliance and corrective actions, including termination if required and capacity building and training. Updates to the system particularly related to energy projects including supplier risk screening and traceability provisions and detailed due diligence will be applied to projects receiving the proceeds of the EBRD investment to align fully with ESR1 and 2.

The current ESAP includes among others strengthening of the risk assessment aspects of the supply chain management system; screening, categorisation and due diligence procedures; developing procedures to ensuring consistent and systematic assessment of social issues (including land acquisition / ESR5) at the project level; and general updates to reflect the new ESRs. The Bank will continue monitoring the Company's performance through annual reports prepared by the Company.

Green assessments

The Project is aligned with the mitigation goals of the Paris Agreement as it features on the joint-MDB aligned list under the categories "Energy", "Buildings and public installations" and "Water supply and wastewater". The Company has in place adequate corporate-level climate practices for the Bank to determine the project is aligned with the adaptation goals of Paris Agreement.

100% of the EBRD financing is classified as green finance, as it supports activities to achieve climate mitigation and other environmental objectives. The attribution is made in line with the methodology to determine the green finance attribution of EBRD investments, and specific guidance in the section on green finance for bonds with defined green-eligible use of proceeds.

Technical Cooperation and Grant Financing

N/A

Company Contact Information

Alexandros Skordos
askordos@gekterna.com
+30 210 6968000
+30 210 6968099
http://www.gekterna.com/
85 Mesogeion Ave., Athens 11526, Greece

PSD Last Updated

02 Oct 2025

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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GEK Terna 2025 Bond

Overview

Project timeline

Company Contact Information

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Additionality

Green assessments

Technical Cooperation and Grant Financing

Company Contact Information

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)