Noval Property REIC Convertible Loan

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

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 ID 54094

Status Signed

Location

Greece

Business Sector

Real Estate

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

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

Project ID 54094

Status Signed

Location

Greece

Business Sector

Real Estate

Notice Type

Private

Environmental Category

Approval Date

19 Jul 2023

Disclosure date

05 Sep 2023

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.

Noval Property REIC Convertible Loan (Greek) (PDF, 0.78MB)

Project description

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

ject 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 & 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

For business opportunities or procurement, contact the client company.

For business opportunities with the 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 its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) 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 also requires its clients to disclose information, as appropriate, about the risks and impacts of 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 of the Bank's activities 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 EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either 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. OCCO will follow-up all matters reported. It will review all matters reported. 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, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. 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 (for example, 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 the 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 and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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Noval Property REIC Convertible Loan

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)