DFF - Photon Energy Green Bond



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

09 Nov 2021



PSD disclosed:

17 Nov 2021

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

An investment in the green senior unsecured fixed coupon corporate bond to be issued by Photon Energy NV

Project Objectives

The proceeds will be used to finance the development of solar projects in the Central and Eastern Europe region, exclusively in the EBRD's countries of operation.

Transition Impact

ETI score: 60

Competitive: The project will support the development by the company of new renewable energy (RE) capacity in Hungary, Poland and Romania, and will represent the company's first steps in the latter two markets. This new capacity will help increasing the share of private generation and facilitate further the competition in the respective countries' energy market. The project supports a Czech company in its efforts to become a regional independent power producer, demonstrating that this Czech company can credibly built on its prior experience to successfully compete in the international markets.

Green: The Project is 100 per cent GET and will contribute to climate mitigation through the addition of new solar capacity. While it is most likely that the first project to be materialised after the bond issuance would be a 28.6 MW solar in Hungary, the conservative assessment was taken in assessing the CO2 targets. The Bank's proceeds are expected to correspond to the increase in 10 MW of solar capacity. This 10 MW addition will generate 12.4 GWh of electricity annually, contributing to 3.96 thousand tonnes of CO2 savings annually.

Client Information


Photon Energy NV is incorporated in the Netherlands with major substances in the Czech Republic. This is a regional renewable developer with an operating portfolio of 89.3 MW of small-sized solar PV power plants in the Czech Republic, Slovakia, Hungary and Australia and an ambition to become a regional independent renewables producer. The Company has a pipeline of 430+ MW solar projects in the Central and Eastern Europe region.

EBRD Finance Summary

EUR 10,000,000


- Financing structure: the EBRD financing is expected to effectively 'close the funding gap' and support a successful book-building process. 

- Resource mobilisation: the EBRD's involvement in a debt capital market transaction provides comfort to other investors and further widens market participation.

- Standard-setting: Client seeks use of the EBRD expertise on higher inclusion, gender standards and/or equal opportunities action plans. Equal opportunity practices of the Company will be assessed through the adoption of the gender-based violence and harassment (GBVH) policy at the international level.

Environmental and Social Summary

Categorised B (2019). Medium-High risk rating. Given the capital market transactions restrictions the ESDD was undertaken in-house and included review of the Prospectus, Issuer's Green Financing Framework, SPO by imug rating, Germany, replies to the EBRD Supply Chain Questionnaire as well as assessment of the Company's corporate E&S management systems. The SPO report rated the Framework as Very Good and issued in accordance with the Green Bond Principles (GBP) published by the ICMA (June 2021). In particular, supply chain risks associated with the sourcing of PV panels will be addressed via update of existing Procurement Policy and development of specific contractor due diligence procedures by the Company. The ESAP contains requirements to adhere to the EU guidance on due diligence for businesses to address the risk of forced labour in their operations and supply chains (2021) and seek third party audits of the solar panels suppliers when it becomes possible. Additionally, the ESAP requires future projects to be subject of E&S risk assessment in terms of sites sensitivities, e.g. protected areas such as Natura 2000 sites, and follow EIA process for over 50MW projects. The ESAP also incorporates requirements for the future reporting and monitoring of the portfolio performance via sustainability and CSR reports made public. The ESAP has been finalised and agreed with the Client. The Project is eligible as 100% GET and is PA aligned for mitigation.

Technical Cooperation and Grant Financing


Company Contact Information

Emeline Parry

PSD last updated

05 Jan 2022

Understanding Transition

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

Business opportunities

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

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General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

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

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 activities of the Bank 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 Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both 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. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. 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 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.

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 (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 ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.


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