The European Bank for Reconstruction and Development (EBRD) invested EUR 12 million in a debut 7-year EUR 120 million Green Bond issued by Noval Property REIC. The Green Bond is listed on the Athens Stock Exchange and aligned with the International Capital Market Association's (ICMA) Green Bond Principles (GBP).
As part of the project, Noval Property has committed to invest the EBRD's proceeds in financing green-certified assets, achieving at least LEED "Gold" or BREEAM "Very Good" certification.
ETI score: 60
The project has been presented under the Greek Corporate Bonds Framework III (BDS20-098), contributing to the development and long-term financial viability of the Greek debt capital markets, under the "Resilient" quality, while improving transparency and disclosures under the "Well-governed" quality.
NOVAL PROPERTY REIC
Noval Property, the second-largest real estate investment company in Greece in terms of assets, maintains a current portfolio of 43 commercial properties valued at EUR 390 million. The Company's investment property portfolio is well diversified across asset classes (retail: 37%; offices: 31%; hospitality 9%; industrial complexes 3%, and other asset types 19% of GAV as of 30 June 2021) covering a total gross leasable area of ca. 318,000 sqm.
EBRD Finance Summary
Total Project Cost
The Bank's participation (i) encourages Noval Property achieving higher building certification standards; (ii) supports the introduction of an innovative green finance instrument rarely used by corporates in the Bank's Countries of Operations; (iii) helps to effectively close the funding gap and allows carrying out a successful book-building process, while at the same time (iv) provides comfort to other investors and further widens market participation.
Environmental and Social Summary
Categorised B (2019 ESP) The project is a capital markets transaction to participate in the Issuer's Green Bond, and the Bank's Environmental & Social Due Diligence ("ESDD") was limited to publicly available information and in-house due diligence. The ESDD (completed without the use of MNPI) was based on review of the completed Corporate ESDD Questionnaire and the Issuer's Green Bond Framework ("GBF") documentation, third-party audit report on the GBF against ICMA GBPs. The ESDD confirmed that the Issuer is in compliance with relevant national ES law, their ES practice is in line with EBRD PRs, that they have adequate ES risk management capacities and their GBF is in line with the GBP. For the project, the Issuer is required to comply with EBRD PRs as well as submit an annual ES report to the Bank. These requirements have been incorporated into a Framework Agreement. The Bank will monitor the project's ES performance by reviewing an annual ES report as well as site visit if deemed required.
Technical Cooperation and Grant Financing
Company Contact Information
Mr. Panagiotis Kapetanakos, CEO
+30 216 8608090
NOVAL PROPERTY REIC Olympioniki Tsiklitira 41 Marousi 151 25 Greece
PSD last updated
09 Dec 2021
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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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
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 email@example.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 firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.