Project Description
The EBRD invested EUR 50 million in a EUR 350 million Senior Preferred ("SP") bond issued by Piraeus Bank S.A. ("Piraeus"), a commercial bank incorporated in Greece, in November 2022. The SP bonds have a maturity of 4 years, with an embedded issuer call option after 3 years, and are listed on the Luxembourg Stock Exchange's Euro MTF market. This is EBRD's first investment in an SP instrument issued by Piraeus Bank, and the second SP bond by the bank, after its debut issuance in October 2021.
Project Objectives
The project supports the resilience and regulatory compliance of the largest bank in Greece in terms of assets, a systemically important institution in the country, and contributes to the capital market development in Greece. Furthermore, the EBRD promotes resource efficiency in the country by requiring Piraeus Bank to allocate funds in the amount of 1.7 times of the EBRD's subscription to finance green investments in renewable energy and energy efficiency.
Transition Impact
ETI score: 66
Transition impact derives from the Resilient quality by supporting Piraeus to gradually build its bail-in-able funding base, diversify the funding sources, and successfully access the capital markets. The Project also supports the Green transition quality and the EBRD's Green Economy Transition ("GET") approach in Greece through Piraeus Bank allocating a multiple of the EBRD investment towards projects which meet strict GET-eligibility criteria.
Client Information
PIRAEUS BANK SA
Piraeus Bank is one of the largest systemic banks in Greece in terms of assets, with a market share by assets of c. 24% as of end-September 2022. The bank generates nearly all of its revenues domestically, following a universal banking model covering all financial and banking activities in the Greek market. Piraeus Bank S.A. is a wholly owned subsidiary of Piraeus Financial Holdings S.A., which is listed on the Athens Stock Exchange.
EBRD Finance Summary
EUR 50,000,000
Total Project Cost
EUR 350,000,000
Additionality
The Project is additional in terms of financing structure and risk mitigation, supporting Piraeus' efforts to meet regulatory requirements for loss-absorbing funding and overall access to the debt capital markets, while the EBRD's participation facilitates further mobilisation of stable, long-hold institutional investors. The project also promotes the green agenda by committing Piraeus to allocate funds in the amount equivalent to 170% of EBRD's investment for financing GET eligibility projects, a complementary feature compared to other investors.
Environmental and Social Summary
Categorised FI (2019 ESP). Piraeus Bank is an existing client and well known to the EBRD through previous exposures. Under the existing exposures, Piraeus Bank is in compliance with the EBRD's Performance Requirements 2, 4 and 9. Piraeus Bank will continue to comply with these PRs, implement EBRD's applicable E&S Risk Management Procedures including the specific eligibility criteria for hydro, wind, solar, bioenergy and geothermal projects, as applicable; and continue to submit annual environmental and social reports to the EBRD.
Technical Cooperation and Grant Financing
None.
Company Contact Information
Xenofon Damalas
investor_relations@piraeusholdings.gr
(+30) 210 3288 100
https://www.piraeusholdings.gr/en/
Amerikis 4, 105 64, Athens, Greece
PSD last updated
17 Feb 2023
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.
