Project Description
Provision of an up to EUR 10.5 million convertible unsecured loan (the "Convertible Loan") to Noval Property REIC (the "Company" or "Noval Property"). The Convertible Loan will be mandatorily converted into newly issued common shares upon the Initial Public Offering ("IPO") of the Company on the Athens Stock Exchange. The proceeds of the Convertible Loan will be directed towards the Company's pipeline of green asset developments and acquisitions in Greece (the "Project").
Project Objectives
Contribution to the expansion of the private sector and support of sustainable developments in the evolving real estate sector in Greece. The Convertible Loan will be used to fund the Company's medium-term investment plans of asset developments and acquisitions dominated by green certified assets, in accordance with Noval Property's long-term strategy of scaling up towards high-quality buildings of modern specifications, fitting occupiers' needs while minimising environmental footprint.
Transition Impact
ETI score: 66
The Project will contribute to the Green quality as EBRD proceeds will be used to fund assets expected to achieve at least LEED "Gold" or BREEAM "Very Good" certification. The Project will also contribute to the Well-Governed quality through the introduction of GRESB reporting standards, the global ESG benchmark for real estate assets which aims to enhance and protect shareholders' value by assessing and empowering sustainability principles.
Client Information
NOVAL PROPERTY REIC
Noval Property is the second largest Real Estate Investment Company ("REIC") in Greece, maintaining a portfolio of 62 commercial properties valued at EUR 516 million as of June 2023 and diversified across asset classes. Noval Property is majority owned by Viohalco SA, a leading metal processing group specializing in the manufacturing of aluminium, copper, cables, steel, and steel pipes products.
EBRD Finance Summary
EUR 10,500,000
Total Project Cost
EUR 10,500,000
Additionality
The Bank offers a pre-IPO financing structure on commercial terms not extensively available from commercial sources of finance in the market, taking market and counterparty risk earlier than other investors, sending a confirming signal towards the prospects of the equity capital market and giving comfort to other participants. The Project is considered Gender Additional given that the Company has committed to signing the UN Women Empowerment principles ("UN WEPs") to solidify its commitment towards gender equality in workforce. Noval Property is the first real estate company in Greece to sign the UN WEPs, setting standards at a national level.
Environmental and Social Summary
Categorised B (2019 ESP). The Bank's Environmental & Social Due Diligence ("ESDD") was carried out by the use of the publicly available information and by in-house due diligence. The ESDD for this transaction was based on the reviews of the completed ESDD Questionnaire, evaluation of the Environmental and Social Impact Report (2021 and 2022) as well as of the Company's Sustainability Report (2021 and 2022). The ESDD showed that the company publishes an annual report in line with the Global Reporting Initiative as well as the Sustainability Accounting Standards. The company is publicly committed to sustainability and publishes analysis of their business operation in accordance with 2030 SDGs. The company aims for a lower carbon footprint through, among others, the implementation of Power Purchase Agreements (PPA's). Their Human Resources (HR) policies include an employee grievance and whistle blowing mechanism and occupational, health & safety policies in line with EBRD PR2 and PR4. Noval Property possesses environmental management accreditations (ISO 14001 Environmental Management and ISO 14064 -1 Greenhouse Gases). Furthermore, it has overarching environmental procedures and environmental managers in place. To ensure the project's compliance with the EBRD PRs, a concise Environmental and Social Action Plan ("ESAP") has been developed and agreed with the client. The client is required to ensure that the project complies with the EBRD PRs as well as submit an annual Environmental and Social report to the Bank. These requirements will be incorporated into the Convertible Loan Agreement and the Framework Agreement.
Technical Cooperation and Grant Financing
None
Company Contact Information
Mr. Panagiotis Kapetanakos
pkapetanakos@noval-property.com
+30 216 8608090
https://noval-property.com/
NOVAL PROPERTY REIC
Olympioniki Tsiklitira 41
Marousi 151 25
Greece
PSD last updated
05 Sep 2023
Understanding Transition
Further information regarding the EBRD’s approach to measuring transition impact is available here.
Business opportunities
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Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com
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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.
