Provision of a EUR 5 million senior unsecured loan to Papoutsanis SA in Greece. The Project addresses the strategic directions of the Country Strategy for Greece, where special focus is put on "supporting the resurgence and enhancing the resilience of the private sector through a shift to a more export-oriented growth model".
The proceeds of the Loan are dedicated to finance EUR 4.5 million capital expenditures of the Company related to the optimization and the upgrade of the manufacturing processes. The Bank also supports with EUR 0.5 million the Company's R&D program.
ETI score: 60
The DFF SME Framework primarily targets the competitive quality by helping SMEs to restructure and become more efficient or professional. Sub-projects can target any of the other transition qualities as the secondary objective. The majority of projects typically support the well-governed quality by helping companies improve their financial management, or the green quality by facilitating energy efficiency and environmental improvements. The Project would contribute to the framework objectives by supporting an SME in the following areas: competitive and integrated.
Papoutsanis S.A. ("Papoutsanis", the "Company" or the "Borrower") is active in the industrial production, processing, trade, and marketing of cosmetics and personal care products since 1870.
EBRD Finance Summary
A EUR 5 million senior unsecured loan, with a tenor of 6 years including 1-year grace period, (the "Loan") under DFF SMEs (ID 47420) to Papoutsanis S.A.
Total Project Cost
A local commercial Bank will provide additional EUR 5,000,000 on a parallel independent basis.
The Loan provides the suitable financing structure to a Greek SME, with a tenor, grace period and repayment profile appropriate to the Borrower's business model. The Bank is considering granting to Papoutsanis membership in its flagship Blue Ribbon Programme, a network of high-growth, high-potential champion SMEs. This will mark the first Blue Ribbon SME in Greece, supporting further Papoutsanis' organic growth and innovation.
Environmental and Social Summary
Categorised B (2014 ESP). The environmental and social issues associated with the provision of capex and long-term debt refinancing to a soap manufacturing facility in Greece can be readily identified and managed.
Environmental and social due diligence (ESDD), carried out by ESD, focused on the client's existing management systems and procedures; the current facilities and operations; EHSS provisions; and permitting status. The client has a valid environmental permit in place and environmental monitoring has not identified any issues related to exceedance of permissible emissions in the last five years. Labour practices comply with Greek national law and there is a Code of Conduct in place. The client is certified to ISO 9001 and ISO 22716, and is committed to a series of international initiatives on the sustainability of palm oil. There is a robust supply chain management system in place. Appropriate workplace risk assessments have been carried out for the production facilities. Based on the ESDD a corporate Environmental and Social Action Plan ("ESAP") has been developed and agreed ith the Company aiming at further strengthening the Company's' existing E&S and OHS management system, and corporate grievance mechanism. The EBRD will monitor the implementation of the ESAP through annual reports from the client and site visits as required.
Technical Cooperation and Grant Financing
Company Contact Information
Papoutsansi Investor's Relations
(+30) 22620 85 000
(+30) 22620 85 070
PAPOUTSANIS S.A. 71st Km National Road Athens - Lamia Vathi Avlidos 34100 Halkida
PSD last updated
14 May 2021
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Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social 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 additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from 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
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Access to Information Policy (AIP)
The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
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Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. 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 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; how to submit a Request for review; or contact IPAM via email email@example.com to get guidance and more information on IPAM and how to submit a request.