GEK TERNA sustainability linked bond



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

30 Nov 2021



PSD disclosed:

15 Dec 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

The EBRD invested EUR 25 million in the EUR 300 million 7-year senior unsecured Sustainability Linked Bond issued by GEK TERNA S.A. The transaction comes under the Greek Corporate Bonds Framework (GCBF) III and represents the first Sustainability Linked Bond to be listed on the Athens Stock Exchange.

The total proceeds of the new bonds will finance business activities in infrastructure, energy, industrial and real estate sectors, refinance existing and future  indebtedness, and finance working capital needs.

The proceeds of the EBRD participation will be used exclusively for refinancing and working capital needs.

The bond includes a sustainability feature with a target to reduce the Group's CO2 intensity by 25% by 2025 compared to 2021. Not meeting this target would lead to an 0.20% increase in its coupon.

Project Objectives

As part of the Framework, the Project aims to support the development of the local corporate bond market in Greece and facilitate the access of Greek corporates to the debt capital markets.

Transition Impact

ETI score: 60

The proposed transaction is submitted as the fourth sub-project under the Greek Corporate Bonds Framework III (BDS20-098) ("GCBF III" or the "Framework"), 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. 

Client Information


GEK TERNA S.A. is a major infrastructure Group, incorporated in Greece whose main businesses are Concessions, Energy and Construction with presence in Central and South East Europe and the Middle East. GEK TERNA is listed on the Athens Stock Exchange.

EBRD Finance Summary

EUR 25,000,000.00

Total Project Cost

EUR 300,000,000.00


Identified triggers:

  • A subsequent/consecutive transaction with the same Company with the same use of proceeds (repeat transaction).
  • A significant share of the project is for refinancing purposes.

The Bank is additional because of its:

  • Terms: EBRD offers a large volume instrument that fills a market funding gap and is required to structure the project.
  • Attributes: EBRD provides comfort to clients and investors by mitigating non-financial risks, such as country, regulatory, project, economic cycle, or political risks.

Environmental and Social Summary

Categorised B (2019 ESP). High to medium risk due to the wide breath of operations in the energy and construction fields. The project is a capital markets transaction and the Bank's due diligence has been limited to a review of publicly available documents by ESD specialists. The level of available information and due diligence has allowed for appropriate assessment of risks in accordance with the Bank's ESP 2019 for this Project. The Bank provided financing to GEK TERNA in 2018 and 2020 and undertook a high level review of the Group at the time as well as developed a corporate ESAP.

The ESDD has confirmed that the company has the institutional capacity to fully implement the Bank's Performance Requirements and is implementing the agreed ESAP. No material noncompliance issues have been identified to date. The Bank has financed some of the Group's renewable energy projects and the Company has been implementing EU and best international practices on all Projects.

Overall, GEK TERNA has good compliance record and is further developing its corporate EHS management systems. It has a dedicated ESG management team and develops sustainability reports for the Group and individually for some subsidiaries. The Company is involved in a number of projects including a new airport in Crete, which has been financed by the EIB. The EBRD proceeds will not be used for this project or any Category A projects. The current ESAP requires that if the Company was to develop projects in sensitive areas or of sensitive nature, these would need a full ESIA in line with Bank requirements and EU EIA Directive.

The ESAP has been developed in 2018 and 2020 with the aim to strengthen the corporate EHS management systems, to ensure continued compliance with the best industry practices as well as to ensure appropriate reporting. The Company is in the process of developing TCFD reporting as part of overall ESG reports. The Company will be implementing this as confirmed by its reporting to the Bank.

The current ESAP has been updated based on the current ESDD and will include among others strengthening of non-financial reporting in line with best practices, EU Corporate Sustainability Reporting Directive (CSRD) and EU guide on climate related information and risks. The Bank will continue monitoring the Company's performance through annual reports prepared by the Company.

Additional Information on GEK TERNA can be found on the Company web pages here (http://

Technical Cooperation and Grant Financing


Company Contact Information

Christos Simos
+30 210 6968000
+30 210 6968099
85 Mesogeion Ave., Athens 11526, Greece

PSD last updated

15 Dec 2021

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 EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

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 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 to get guidance and more information on IPAM and how to submit a request.


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