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").
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.
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.
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
Total Project Cost
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
Company Contact Information
Mr. Panagiotis Kapetanakos
+30 216 8608090
NOVAL PROPERTY REIC Olympioniki Tsiklitira 41 Marousi 151 25 Greece
PSD last updated
05 Sep 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).
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.
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