GEK TERNA bond 2020

Location:

Greece

Project number:

51882

Business sector:

Energy

Notice type:

Private

Environmental category:

B

Approval date:

25 Mar 2020

Status:

Signed

PSD disclosed:

06 Jul 2020

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 57.5 million in the EUR 500 million senior unsecured bond issued by GEK TERNA S.A. The bond is listed on the Athens Stock Exchange and is maturing in 2027. The participation comes under the Greek Corporate Bonds Framework - Extension.

Project Objectives

As part of the Framework, the Project aims to support the development of the local corporate bond market in Greece and facilitate the access of Greek corporates to the debt capital markets. The EBRD proceeds will be used to refinance secured commercial loans with longer tenor and reduced financing costs, enabling the corporate transformation that will optimise, among others, the capital structure of GEK TERNA. Further proceeds from the bond issuance will support new and/or existing investments in concession, infrastructure and energy projects.

Transition Impact

ETI score: 60

This Project is presented under the Greek Corporate Bonds Framework - Extension (the "Framework") and contributes to achieving the Framework's Transition Impact objectives. The Framework aims to build scale and critical mass for the development of the local debt capital markets and strengthen reference points for volume, tenors, pricing and standards (credit ratings). The Project is the largest bond issuance under the Framework.

Client Information

GEK TERNA SA

GEK TERNA S.A. is the holding company for a group active in concessions, renewable energy, thermal energy and construction, incorporated in Greece. It is listed on the Athens Stock Exchange.

EBRD Finance Summary

EUR 57,500,000.00

Total Project Cost

EUR 500,000,000.00

Environmental and Social Summary

Categorised B (2019 ESP). The project is a capital markets transaction and the Bank's due diligence has been limited to a review of publicly available documents by ESD specialists. The level of available information and due diligence has allowed for appropriate assessment of risks in accordance with the Bank's ESP 2019 for this Project. The Bank provided financing to GEK TERNA in 2018 and undertook a high level review of the Group at the time as well as developed a corporate ESAP. 

The ESDD has confirmed that the company has the institutional capacity to fully implement the Bank's Performance Requirements and is implementing the agreed ESAP. No material non-compliance issues have been identified to date. The Bank has financed some of the Groups renewable energy Project and the Company has been implementing EU and best international practices on all Projects.

Overall, GEK TERNA has good compliance record and is further developing its corporate EHS management systems. It has a dedicated EHS management team and develops sustainability reports for the group and individually for some subsidiaries. The Company is involved in a number of projects including a new airport in Crete, which has been financed by the EIB. The EBRD proceeds will not be used for this project or any Category A projects. The current ESAP requires that if the Company was to develop projects in sensitive areas or of sensitive nature these would need a full ESIA in line with Bank requirements.

The ESAP has been developed in 2018 with the aim to strengthen the corporate EHS management systems, to ensure continued compliance with the best industry practices as well as to ensure appropriate reporting. The Company has been implementing this as confirmed by its reporting to the Bank.

The current ESAP has been updated based on the current ESDD and will include among others strengthening of non-financial reporting in line with best practices and EU guide on climate related information. The updated ESAP will form part of the Framework Agreement to be signed shortly before subscription. The Bank will continue monitoring the Company's performance through annual reports prepared by the Company.

Additional Information on GEK TERNA can be found on the Company web pages here (http://www.gekterna.com/sustainable-development/)

Technical Cooperation and Grant Financing

None.

Company Contact Information

Christos Simos
csimos@gekterna.com
+30 210 6968000
+30 210 6968099
http://www.gekterna.com/
85 Mesogeion Ave., Athens 11526, Greece

Implementation summary


PSD last updated

06 Jul 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.

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.

 

Share this page: