An up to EUR 88 million senior unsecured loan to Fulgor SA ("Fulgor", or the "Company") in Greece. The proposed investment marks the fourth sub-operation under the Greek RRF Co-Financing Framework. The loan will be structured in two tranches, where up to EUR 62.8 million will be provided by EBRD's own resources and up to EUR 25.2 million will be channelled through the Greek RRF Corporate Loan Facility, ultimately funded by the EU.
The loan proceeds will finance the Company's investment programme in Greece for the production of submarine cables, as well as associated working capital outlays and R&D initiatives (the "Project"). The total Project cost of EUR 110 million will be funded from the EUR 88 million proposed debt-financing package and EUR 22 million from Fulgor's own funds.
Through increased production capacity, Fulgor will be able to unlock significant opportunities of large interconnection projects and capture the growth in offshore wind installations worldwide. The Project addresses the strategic directions of the EBRD Country Strategy for Greece, which aims at "accelerating shift towards renewable energy in line with National Energy and Climate Plan" and is in line with Greece's Recovery and Resilience Plan by "contributing to green skills and jobs and the green economy", promoting ultimately the decarbonisation of the Greek economy.
ETI score: 68
The transaction contributes to the Competitive TI Quality, as the targeted capital and R&D investments will lead to operational changes and improvements in the production planning as well as higher level of efficiency. Furthermore, the Project supports the Green Quality, expanding the Company's capacity to manufacture submarine cables used for the interconnection of islands and offshore wind projects, fostering the energy transition towards a LowCarbon Economy.
Fulgor is active in the design, production and installation of cables (submarine, fibre, composite and special purpose ones), as well as the industrial production of copper and aluminium wires and rods.
EBRD Finance Summary
Total Project Cost
The EBRD enables the Company's access to competitive RRF financing, while allowing for exposure headroom with domestic financial institutions. Fulgor benefits from EBRD expertise to achieve higher standards, including through the adoption of financial covenants in line with best sound-banking practices and the prevailing standards for the leading creditworthy cable manufacturing companies in Europe, as well as the review of its creditworthiness through an external credit rating, which ultimate strengthens its ability to attract new financing in the future. The Project promotes gender equality for STEM occupations in Greece by supporting female empowerment and equality through the introduction of a number of initiatives in the existing diversity policy of Fulgor's parent company, Hellenic Cables.
Environmental and Social Summary
Category B (2019 Environmental and Social Policy). Environmental and Social Due Diligence (ESDD) concluded that the current Environmental & Social (E&S) management practices of the Company are in compliance with Good Industry Practices and overall environmental and social issues involved with the Project can be readily managed. Projects under EU's Resilience and Recovery Facility (RRF) are required to demonstrate that they Do No Significant Harm (DNSH), which requires application of the InvestEU Sustainability Proofing guidance for the climate and environmental dimensions of the Project. ESDD has confirmed that E&S impacts are low risk and readily mitigated, and therefore no detailed sustainability proofing is required and the Project meets the DNSH requirement for the RRF. The Project has also obtained RRF auditor approval from an independent party providing assurance services on DNSH. The findings of the ESDD also showed that the Project complies with EU and national environmental legislation. The facility is certified according to ISO 9001/14001:2015 and ISO 45001/50001:2018 standards. The Company has responsible employees for Sustainability, Environmental Management, H&S and Supply Chain both at group and at plant levels. The Company has a dedicated Project Management Office consisting of specialised experts playing role in supervision and management of projects, which provides an assurance for standard practices for Contractor Management including E&S aspects. Residual risks identified during the ESDD have been made part of an Environmental Social Action Plan (ESAP) encompassing measures of institutional strengthening as well as mitigation measures to ensure the Project is in full compliance with EBRD Performance Requirements.
The Bank will monitor the Project and the ESAP implementation through review of Annual E&S Reports.
Technical Cooperation and Grant Financing
Company Contact Information
(+30) 210 6787 927
(+30) 210 6787 406
33 Amaroussiou Halandriou Str. 151 25, Amaroussion
PSD last updated
26 May 2023
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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).
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