Mytilineos Green Eurobond

Location:

Greece

Project number:

52790

Business sector:

Manufacturing and Services

Notice type:

Private

Approval date:

14 Apr 2021

Status:

Signed

PSD disclosed:

29 Apr 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 subscribed to the amount of EUR 60 million to the EUR 500 million senior unsecured green Eurobond maturing in October 2026 and issued by Mytilineos S.A (the "Company" or "Mytilineos").

Project Objectives

The proceeds of the green Eurobond will be exclusively applied to finance, in part or in full, existing or new eligible green projects as defined in the International Capital Market Association's ("ICMA") Green Bond Principles ("GBP") that Mytilineos commits to undertake. The success of the issuance will contribute to Mytilineos' low carbon transition strategy and in particular, by increasing the production of recycled aluminium (from scrap) through the use of the Bank's proceeds.

Transition Impact

ETI score: 60

The transaction has been developed under the Greek Corporate Bonds Framework III supporting the development and long-term financial viability of debt capital markets for Greek corporates. This operation promotes the use of a financial instrument not commonly utilised in the EBRD's countries of operations. The operation will also adhere to the highest level of transparency and disclosure required in  green capital markets.

Client Information

MYTILINEOS SA

Mytilineos is one of Greece's leading and globally operating industrial and energy companies, listed on the Athens Stock Exchange since 1995 and active in Power & Gas, Metallurgy, Renewables and Storage Development and Sustainable Engineering Solutions. The group was founded in 1908 in Greece and today has a strong international presence with projects in more than 30 countries on five continents.

EBRD Finance Summary

EUR 60,000,000.00

EUR 60,000,000

Total Project Cost

EUR 500,000,000.00

EUR 500,000,000

Additionality

Mytilineos' successful issuance showcases access to finance for hard-to-abate sectors. The project has important inclusive and green objectives with the Green Economy Transition share associated with the project being 100 per cent. Mytilineos' commitment to  Task Force on Climate-related Financial Disclosures (TCFD)-aligned reporting by the end of 2022 goes significantly beyond legal requirements and standard best practice, while the EBRD's participation promotes the gender inclusion agenda for Sciences, Technology, Engineering and Mathematics (STEM) in Greece.

Environmental and Social Summary

Categorised B (2019 ESP). The successful issuance of the Green Eurobond will contribute to Mytilineos' low-carbon transition strategy by implementing various low-carbon investments. The use of proceeds will explicitly exclude any A category projects. The bond issuance is in line with the International Capital Market Association's ("ICMA") Green Bond Principles ("GBP"), as verified by ISS, an external reviewer that provides a second party opinion ("SPO").

The ESDD has reviewed the status of compliance and implementation of the existing ESAP, and the Company's approach to environmental and social governance ("ESG") principles. The ESDD relied on past due diligence undertaken by the Bank in 2019 with additional virtual meetings in 2021 undertaken by ESD specialists in-house, review of publicly available information and discussions with relevant specialists of the Company in Greece. The ESDD focussed on a corporate-level review of Mytilineos' management systems, sustainability strategy, policies and operations and its current compliance status across its main business units: the aluminium, energy and EPC as well as the aluminium recycling operations.

The Company has a proactive and comprehensive corporate ESG strategy, encompassing social and environmental performance, employment, health and safety, biodiversity, socio-economic impacts and community relations and has a strong commitment to implementing sound international environmental and social industry practices throughout its operations. Mytilineos plants operate in compliance with EU environmental standards, including Best Available Techniques ("BAT") as defined under the Industrial Emission Directive ("IED"). The Company is actively involved in defining the BAT for the Aluminium industry in Europe. Based on the ESDD, the previous corporate ESAP has been updated and agreed with the Company aiming at further strengthening the Mytilineos' existing ESG procedures and continued certification to international standards. The ESDD confirmed that the Company demonstrates good environmental and social governance standards and good international practices in environmental and social sustainability. 

The Project is consistent with the GET approach and the GET share is 100%. The ESDD also confirmed that the ESAP agreed in 2019 is being implemented, and that the GBP has additional more stringent criteria for reporting and disclosure of ESG information as well as higher focus on renewable energy setting out environmental and social assessment criteria. 

The Bank will monitor the implantation of this project jointly with the existing project and continue to engage with the Company.

Technical Cooperation and Grant Financing

None

Company Contact Information

Mytilineos Investors Relations
ir@mytilineos.gr
+30 210-6877300
+30 210-6877400
http://www.mytilineos.gr/
8 Artemidos Str.,Maroussi, 15125 Athens

PSD last updated

29 Apr 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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