DFF - Photon Green Bond Extension



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

17 May 2022



PSD disclosed:

08 Jun 2022

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 of EUR 7.5m in the green senior unsecured fixed coupon corporate bond (the Green Bond) issued by Photon Energy NV (the Company).

This is a follow-on operation of the Bank's investment of EUR 10m in the Company's inaugural EUR 55m green bond (maturing on November 2027) which took place at the end of 2021 (Opid 52971). The Company is to issue additional EUR 15m green bond with the same terms in two tranches; the first EUR 10m in May 2022 and the second EUR 5.0m to be made in 3Q 2022. The Bank's investment will be up to 50% of each tranche.

Project Objectives

The Company has a pipeline of 340+ MW solar projects in the CEE region (including 27 MW in Hungary, 194 MW in Poland and 225 MW in Romania) and Australia. The Bank's proceeds will be used to finance the development of solar projects in the Central and Eastern Europe region, with the Hungarian and Romanian pipeline being currently the most advanced.

Transition Impact

ETI score: 60

Competitive: The operation will support the development by the Company of new RE capacity in Hungary, Poland and Romania. This new capacity will help to increase the share of private generation and facilitate further competition in the countries' energy markets.

Green: The Project is 100% GET and will contribute to climate mitigation through the addition of new solar capacity. While it is most likely that the first project to materialize after this additional top-up issuance would be a solar portfolio of 37 MW in Romania, a conservative assessment was taken in assessing the CO2 target savings. The Bank's proceeds of up to EUR 7.5m are expected to correspond to an increase of 7.5 MW in solar capacity. This 7.5 MW addition will generate 9.86 GWh of electricity annually, contributing to 4.08 thousand tons of CO2 savings per annum.

Client Information


Photon Energy NV, a corporation incorporated in the Netherlands with major substances in the Czech Republic (the Company), is a regional renewable developer with an operating portfolio of 90.5 MW in small sized solar PV power plants in Czech Republic, Slovakia, Hungary and Australia and an ambition to become a regional independent renewables producer.

EBRD Finance Summary

EUR 7,500,000.00

Total Project Cost

EUR 12,500,000.00


- Financing structure: EBRD financing is expected to effectively 'close the funding gap' and allows carrying out a successful book-building process with appropriate scaling back in case of oversubscription.

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

Environmental and Social Summary

Categorised B (2019 ESP) and High-Medium risk due to the solar supply chain issues related to labour risks in China and additional information required to assess E&S sensitivity of the pipeline. The extension of the existing bond transaction with this Client was subject to the limited ESDD with review of the recent Sustainability report, and ESAP compliance status updates.

The Company is implementing the existing ESAP and committed to comply with National and EU legislation inclusive EU disclosure and reporting requirements. The ESDD also confirmed that the Company has the institutional capacity to implement the Bank's PRs and none of the proposed sites are located in sensitive areas and would not fall under the Banks Environmental and Social Policy A category. 

As part of the original project Framework Agreement the Client agreed to introduce enhanced procurement procedures to minimize supply chain risks associated with the sourcing of PV panels from China and related human rights issues. The Bank's participation in this top up of the existing green bond is related to 7.5MW increase in solar PV capacity of the pipeline in Romania and Hungary. There is no new locations associated with this transaction. Therefore, the existing ESAP remains valid, but the Framework Agreement will have to reflect the updated Management Approach to distributed solar projects. Therefore, the Client is being consulted on the need to limit future projects to 5MW capacity and to incorporate GTS use for the procurement of solar panels.

The Project is eligible as 100% GET and is considered aligned with the objectives of the Paris Agreement. The assessment of the physical climate risk of the CART Counterparty After Risk Transfer was undertaken and resulted in a Physical Climate Risk (PC) score of 1.

Technical Cooperation and Grant Financing


Company Contact Information

Emeline Parry

PSD last updated

08 Jun 2022

Understanding Transition

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 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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