- €12 million loan to leading Greek soap manufacturer Papoutsanis
- Investment will support the continued vertical integration of production and associated energy-efficiency initiatives
- First SME project under the EBRD’s Greek RRF Co-Financing Framework, partly funded by the EU
The European Bank for Reconstruction and Development (EBRD) is providing a €12 million loan to Papoutsanis S.A., a Greek manufacturer of soap and liquid cosmetics, to enable the continued upgrade of its production systems and a reduction in its energy consumption needs.
The project falls under the EBRD’s Greek Recovery and Resilience Facility (RRF) Co-Financing Framework and will be implemented as part of the “Greece 2.0” National Recovery and Resilience Plan, funded by the European Union’s (EU) NextGenerationEU programme.
Today’s signing ceremony was attended by EBRD Head of Greece and Cyprus Andreea Moraru, CEO of Papoutsanis Menelaos Tassopoulos, Alternate Minister of Finance Theodoros Skylakakis and Governor of the Greek Recovery and Resilience Agency Nikos Mantzoufas.
The loan consists of a €8.9 million tranche provided from the Bank’s own resources and a €3.1 million tranche financed by the EU’s RRF, channelled through Greece’s Ministry of Finance, which complements Papoutsanis’ own contribution of €3 million.
The loan proceeds will finance the further vertical integration of the company’s production lines with respect to solid and liquid products, as well as the upgrade of certain downstream equipment, thereby enabling the automation and optimisation of production and handling/storage processes. The new equipment will also help reduce the company’s energy consumption and greenhouse gas (GHG) emissions.
In addition, the loan will support Papoutsanis’ multidimensional research and development (R&D) programme, which is focused on sustainable innovation and minimising its portfolio’s environmental footprint, in line with circular economy principles.
Papoutsanis is listed on the Athens Stock Exchange and has been active in the production, processing, trade and marketing of cosmetics and personal care products since 1870. It is a long-standing partner of the EBRD and the first Greek company to join the Bank’s Blue Ribbon programme, which combines business advice and finance for SMEs that stand out for their market leadership and high growth potential.
The EBRD is working with the government of Greece to support the implementation of the country’s National Recovery and Resilience Plan and the subsequent deployment of funding to the Greek economy. The Bank’s programme combines RRF loans managed and deployed by the EBRD, the Bank’s own commercial financing, and financing from private investors and commercial banks to achieve a significant multiplier effect. Funds of up to €1 billion will be deployed in Greece by the end of 2025.
The EBRD started operating in Greece on a temporary basis in 2015 to support its economic recovery. To date, the Bank has invested more than €6.3 billion in 97 projects in the country’s corporate, financial, energy and infrastructure sectors.