Titan 2027 Eurobond

Location:

Greece

Project number:

52337

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Approval date:

07 Jul 2020

Status:

Signed

PSD disclosed:

06 Aug 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 has subscribed the amount of EUR 15 million to the 7-year, EUR 250 million senior unsecured Eurobond (the "Bond") issued by Titan Global Finance Plc  (the "Issuer" or "TGF"), the finance arm of Titan Group. Titan Cement Company SA ("TCC") incorporated in Greece and its parent company Titan Cement International SA ("TCI") incorporated in Belgium are the guarantors of the Notes ( the "Guarantors"). 

Project Objectives

The Bank's proceeds will be used for the partial refinancing of the Titan Eurobond maturing in June 2021.

Transition Impact

ETI score: 60

This is the first sub-project under the Greek Corporate Bonds Framework III and supports primarily the development of the local capital market under the "Resilient" quality. It also improves standards of transparency and disclosure under the "Well-governed" quality.

 

Client Information

TITAN CEMENT COMPANY SA

Titan is a vertically integrated cement and building materials producer founded in 1902 in Athens, Greece. Titan has operations in 14 countries, production facilities in 10 countries and employs over 5,300 people worldwide.

EBRD Finance Summary

EUR 15,000,000.00

Total Project Cost

EUR 15,000,000.00

Additionality

An ESAP has been agreed with Titan and  includes measures strengthening of the Company's Environmental, Social and Governance (ESG) disclosure and reporting in line with best practice and EU guidelines as well as the implementation of the recommendations of the EU Sustainable Finance Strategy.

Environmental and Social Summary

Categorized B (ESP 2019), high to medium risk due to the sector and nature of operations. The Bank has a long track record of working with Titan and has provided financing in the past, including for a equity project in Albania as well as subscribing to two previous Eurobonds of the group in 2016 and 2017. The proceeds of this bond will be used to refinance the Company's existing bond. As part of the bond subscription in 2017 the Bank agreed with the Company, through a Framework Agreement, an Environmental and Social Action Plan (ESAP) to ensure compliance with the Bank's Environmental and Social Policy (ESP) and its Performance Requirements (PRs). The Company has been implementing the existing ESAP on schedule and reporting its progress back to the Bank.  There is no GET component associated with this Project.

As part of the current Project, the Bank has undertaken additional in-house ESDD though virtual meetings and questionnaires as well as review of publicly available documents and annual reports. The in-house ESDD confirmed that that Company has the institutional capacity to implement the Bank's PRs and overall, its plants operate in compliance with regulatory requirements and EU environmental standards.  The Company has a proactive corporate social responsibility strategy that aims at achieving environmental, health and safety and social performance compatible with best industry practices in line with the BAT across its operations. As part of reporting on the existing bond the Company has provided information on its non-financial operations and CSR reports. Based on the ESDD the existing ESAP has been updated to take account of the Bank's 2019 ESP and to allow the Project to comply with the Bank's PRs.  This includes strengthening of the Company's Environmental, Social and Governance (ESG) disclosure and reporting in line with best practice and EU guidelines as well as the implementation of the recommendations of the EU Sustainable Finance Strategy.  The Bank will continue to monitor the implementation the Project and ESAP.

Technical Cooperation and Grant Financing

None Applicable

Company Contact Information

Nikos Andreadis
n.andreadis@titancement.gr
+30 210 2591 483
www.titan-cement.com

PSD last updated

06 Aug 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 how to submit a Request for review through our confidential online form, by emailmail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requesters’ identities may be kept confidential, upon request.

 

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