DFF Karavaki –Papoutsanis SME

Location:

Greece

Project number:

51292

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Approval date:

21 Jan 2020

Status:

Disbursing

PSD disclosed:

30 Jan 2020

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 a EUR 5 million senior unsecured loan to Papoutsanis SA in Greece. The Project addresses the strategic directions of the Country Strategy for Greece, where special focus is put on "supporting the resurgence and enhancing the resilience of the private sector through a shift to a more export-oriented growth model".

Project Objectives

The proceeds of the Loan are dedicated to finance  EUR 4.5 million capital expenditures of the Company related to the optimization and the upgrade of the manufacturing processes. The Bank also supports with EUR 0.5 million the Company's R&D program.

Transition Impact

ETI score: 60

The DFF SME Framework primarily targets the competitive quality by helping SMEs to restructure and become more efficient or professional. Sub-projects can target any of the other transition qualities as the secondary objective. The majority of projects typically support the well-governed quality by helping companies improve their financial management, or the green quality by facilitating energy efficiency and environmental improvements. The Project would contribute to the framework objectives by supporting an SME in the following areas: competitive and integrated.

Client Information

PAPOUTSANIS SA

Papoutsanis S.A. ("Papoutsanis", the "Company" or the "Borrower") is active in the industrial production, processing, trade, and marketing of cosmetics and personal care products since 1870.

EBRD Finance Summary

EUR 5,000,000.00

A EUR 5 million senior unsecured loan, with a tenor of 6 years including 1-year grace period, (the "Loan") under DFF SMEs (ID 47420) to Papoutsanis S.A.

Total Project Cost

EUR 10,000,000.00

A local commercial Bank will provide additional EUR 5,000,000 on a parallel independent basis.

Additionality

The Loan provides the suitable financing structure to a Greek SME, with a tenor, grace period and repayment profile appropriate to the Borrower's business model.  The Bank is considering granting to Papoutsanis membership in its flagship Blue Ribbon Programme, a network of high-growth, high-potential champion SMEs. This will mark the first Blue Ribbon SME in Greece, supporting further Papoutsanis' organic growth and innovation.

Environmental and Social Summary

Categorised B (2014 ESP). The environmental and social issues associated with the provision of capex and long-term debt refinancing to a soap manufacturing facility in Greece can be readily identified and managed.

Environmental and social due diligence (ESDD), carried out by ESD, focused on the client's existing management systems and procedures; the current facilities and operations; EHSS provisions; and permitting status. The client has a valid environmental permit in place and environmental monitoring has not identified any issues related to exceedance of permissible emissions in the last five years.  Labour practices comply with Greek national law and there is a Code of Conduct in place. The client is certified to ISO 9001 and ISO 22716, and is committed to a series of international initiatives on the sustainability of palm oil.  There is a robust supply chain management system in place.  Appropriate workplace risk assessments have been carried out for the production facilities.  Based on the ESDD a corporate Environmental and Social Action Plan ("ESAP") has been developed and agreed ith the Company aiming at further strengthening the Company's' existing E&S and OHS management system, and corporate grievance mechanism. The EBRD will monitor the implementation of the ESAP through annual reports from the client and site visits as required.

Technical Cooperation and Grant Financing

None.

Company Contact Information

Papoutsansi Investor's Relations
info@papoutsanis.gr
(+30) 22620 85 000
(+30) 22620 85 070
https://www.papoutsanis.gr
PAPOUTSANIS S.A. 71st Km National Road Athens - Lamia Vathi Avlidos 34100 Halkida

PSD last updated

30 Jan 2020

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.

Project Complaint Mechanism (PCM)

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 accountability mechanism.

The accountability mechanism 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 our webpage to find out how to submit a complaint through the confidential online form, by email, mail or telephone. We are available to discuss your concerns and answer any questions you may have about the submission or handling of complaints. Complainants’ identities may be kept confidential upon request.

Please note that after the appointment of the new mechanism Head in 2020, the revised Project Accountability Policy and Guidance will come into effect to guide case handling.

 

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