Hatzopoulos RRF

Location:

Greece

Project number:

53741

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Approval date:

12 Jul 2022

Status:

Disbursing

PSD disclosed:

07 Jul 2022

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

Provision of an up to EUR 10 million loan to A. Hatzopoulos SA ("Hatzopoulos" or the "Company") in Greece. The proposed transaction is presented as the second sub-operation under EBRD's Greek Recovery and Resilience Facility Co-Financing Framework. The loan will be structured in two tranches, where up to EUR 3.75 million will be provided by EBRD's own funds and up to EUR 6.25 million will be channelled through the Greek RRF Corporate Loan Facility. The Project addresses the strategic directions of the Country Strategy for Greece, where special focus is put on "Strengthening the capacity of corporates and SMEs to add value" and is in line with Greece's Recovery and Resilience Plan ("RRP or "Greece 2.0") in supporting extroverted enterprises and their green transition.

Project Objectives

The project will finance the investment program of Hatzopoulos with respect to energy efficiency capex and R&D expenditures, enabling the Company's transition to more recyclable and sustainable products through the acquisition of new machinery and an R&D programme focused on circular economy (the "Project").

Transition Impact

ETI score: 60

The expected transition impact stems from the Project's contribution to the Green TI quality:

The Project will support the replacement of old equipment with state-of the-art machinery which will result in reduction of energy consumption and will allow to process new recyclable film structures in line with circular economy objectives. The Project will also finance the Company's R&D investments in designing fully recyclable packaging solutions.

Client Information

ATHANASIOS HATZOPOULOS PACKAGING MATERIALS INDUSTRY SA

A. Hatzopoulos S.A. specialises in the manufacturing of flexible packaging materials for the food and beverages, home and personal care, cosmetics and pharmaceuticals industries. The Company is located in Thessaloniki, operating two manufacturing plants and exporting over 75% of its production to over 30 countries.

The Company is owned by Hatzopoulos family.

EBRD Finance Summary

EUR 3,750,000.00

An up to EUR 10 million senior unsecured loan to Hatzopoulos S.A. The loan will be structured in two tranches, where up to EUR 3.75 million will correspond to the EBRD tranche and the remainder to the RRF tranche.

Total Project Cost

EUR 12,500,000.00 

Additionality

EBRD offers an innovative financing structure not readily available from other banks. Hatzopoulos benefits from EBRD expertise to achieve higher standards, including through a commitment to undertake an external review of its creditworthiness by an independent credit rating agency, which ultimate strengthens Hatzopoulos ability to attract financing in the future.

Environmental and Social Summary

Categorised B (2019 ESP) and low-medium risk. Key E&S risks and impacts associated with energy efficiency capex (replacement of machineries and installation of system in existing plants) and R&D activities on green packaging, include occupational health and safety, air emissions, energy efficiency, and circular economy.

Hatzopoulos is an existing client of the Bank and the E&S monitoring on the initial transaction shows satisfactory implementation of the Environmental and Social Action Plan (ESAP). Environmental and Social (E&S) due diligence will be undertaken by ESD and will include a review of the project's environmental questionnaire and latest Annual Environmental and Social Report (AESR), as well as preparation of the Sustainability Proofing Summary for submission to the RRF Certified Independent Auditor. The project is deemed not significantly exposed to physical climate risks and is considered Paris aligned for adaptation. The project is also Paris aligned for mitigation, as it supports the client's recyclability goals.

Technical Cooperation and Grant Financing

None.

Company Contact Information

Vasilios Kouskouras
info@hatzopoulos.gr
+30 2310 551 801
+30 2310 540 673
https://hatzopoulos.gr/
21, Stadiou street 57009 Kalohori Thessaloniki, Greece

Implementation summary


PSD last updated

11 Jul 2022

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
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

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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