Eurobank bonds issue Greece

Location:

Greece

Project number:

51602

Business sector:

Financial institutions

Notice type:

Private

Approval date:

16 Dec 2020

Status:

Signed

PSD disclosed:

06 May 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 50 million (10% of the issuance amount) in senior preferred bonds issued by Eurobank S.A. ('ERB') , as part of a public benchmark issuance of EUR 500 million to be listed on the Luxembourg  Stock Exchange's EURO MTF market. The issuance was marketed mainly to international institutional investors. The bonds have a 6-year maturity with a call option on the fifth year. This transaction marks Eurobank S.A.'s return to international capital markets, with its first senior unsecured bond issuance since 2014.

Project Objectives

The project supports the resilience and regulatory compliance of the fourth largest bank in Greece, a systemically important institution in the country and contributes to the capital market development of Greece. The project also aims to support strong green-impact targets with 150% of the EBRD's investment to be allocated to finance green projects in line with EBRD's Green Economy Transition ("GET") eligibility criteria.

Transition Impact

ETI score: 64

The expected transition impact stems from the contribution to the Resilient and Green qualities:

Resilient: supporting the gradual build-up of Eurobank S.A.'s Minimum Required Own Funds and Eligible Liabilities ("MREL") and ultimately contributing to its regulatory compliance, (ii) helping to further diversify its funding sources. The project also contributes to the capital market development through supporting expansion of the market of relatively new capital market instruments for Greece like MREL-eligible senior preferred instruments.

Green: Eurobank S.A. will allocate 150% of EBRD's investments for financing green projects in line with EBRD's ("GET") eligibility criteria and aims to promote further the green agenda in Greece.

Client Information

EUROBANK SA

is the fourth largest bank in Greece in terms of total assets with a market share of ca. 20% as of year-end 2020. Its core business is concentrated in Greece and it is a well-recognised bank in South-Eastern Europe with presence in Bulgaria, Cyprus and Serbia. Eurobank S.A. is a wholly owned subsidiary of Eurobank Ergasias Services and Holdings SA ("ERBH") listed on the Athens Stock Exchange.

EBRD Finance Summary

EUR 50,000,000.00

Total Project Cost

EUR 500,000,000.00

Additionality

The Project depicts strong additionality by i) supporting ERB to cover a sizeable requirement of MREL funding, (ii) supporting ERB to widen the stable investor base by sending a positive signal to the markets, and (iii) encouraging ERB's green agenda by promoting financing of green projects in line with EBRD's GET criteria .

Environmental and Social Summary

Category FI (2019 ESP). ERB is an existing client and well known to the EBRD through previous exposures. Under the existing exposures, ERB is in compliance with the EBRD's Performance Requirements 2, 4 and 9. ERB will continue to comply with these PRs, implement EBRD's applicable E&S Risk Management Procedures including the specific eligibility criteria for wind, solar, hydro, geo-thermal or biomass projects, as relevant; and continue to submit annual environmental and social reports to the EBRD.

Technical Cooperation and Grant Financing

N/A

Company Contact Information

Lydia Kekridou
FundingOrigination@eurobank.gr
+30 210 3718 771
https://www.eurobankholdings.gr/en
8, Othonos Str., 10557, Athens, Greece

Implementation summary

N/A

PSD last updated

10 May 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
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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