Piraeus Synthetic Securitisation (Ermis II)

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

Investment of c. EUR 10 million in credit linked notes, issued by a newly established securitisation special purpose entity (the "Issuer"), covering the credit risk of the senior mezzanine tranche in a synthetic balance sheet securitisation of a performing mixed loans portfolio, originated by Piraeus Bank S.A., a commercial bank incorporated in Greece (the "Originator" or "Piraeus").

Project ID 54119

Status Signed

Location

Greece

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

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

Company Contact Information

Xenofon Damalas
investor_relations@piraeusholdings.gr
(+30) 210 333 5818
https://www.piraeusholdings.gr/en/
Amerikis 4, 105 64, Athens, Greece

Project ID 54119

Status Signed

Location

Greece

Business Sector

Financial Institutions

Notice Type

Private

Approval Date

14 Dec 2022

Disclosure date

26 Jan 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.

Piraeus Synthetic Securitisation (Ermis II) (Greek) (PDF, 0.70MB)

Project description

Project objectives

The project boosts the resilience of a systemic bank in Greece, and i subject to receipt of the ordinary terms and approvals by the competent authorities i will allow Piraeus Bank to achieve a risk weighted assets relief and optimise its regulatory capital requirements, while the anticipated RWA relief will be redeployed to new on-lending to the real economy. Furthermore, the EBRD promotes resource efficiency in the country by requiring Piraeus Bank to allocate funds in the amount of 1.7 times of EBRD's subscription to finance green investments in renewable energy and energy efficiency.

Transition impact

ETI Score:63

project delivers transition impact through the Resilient quality, as it will contribute to the optimisation of the bank's capital structure by achieving weighted assets' relief and freeing up lending capacity, and further support the establishment of an innovative instrument in the Greek market, the use of which remains limited to date. 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

The Issuer: A securitisation special purpose entity established in Ireland for the purposes of the synthetic balance sheet securitisation originated by Piraeus.

The Originator: 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 10,000,000.00

Investment of EUR 9,995,609 in credit linked notes

Total project cost

EUR 93,922,864.00

Additionality

The Bank's investment will facilitate the establishment of a relatively new instrument in the Greek financial market, where investor appetite remains limited. EBRD's participation promotes higher transaction standards and aims to support further mobilisation of institutional investors in the future, contributing to the deepening of the market. The project also involves standard-setting in the request to allocate EBRD participation proceeds to GET-eligible projects, meeting certain demanding standards and certification requirements. This further helps Piraeus Bank to promote green projects and enhance awareness and deployment of funds in this area and sets a market example for sustainable finance.

Environmental & Social Summary

Categorised FI (ESP 2019). Piraeus is an existing client and well known to the EBRD through previous exposures. Under the existing exposures, Piraeus is in compliance with the EBRD's Performance Requirements 2, 4 and 9. Piraeus will be required to continue to comply with these PRs, including the expanded E&S Exclusion List and new Referral List as introduced with ESP 2019; implement EBRD's applicable E&S Risk Management Procedures, and continue to submit annual environmental and social reports to the EBRD. The underlying securitised loan portfolio, guaranteed by EBRD, should be subject to Piraeus's ESMS, and the allocated multiple amounts should be reviewed and monitored in line with the requirements of PR9 and Piraeus' ESMS. Any potential renewable energy projects under the green allocation will need to follow the E&S Eligibility Criteria for hydro, wind, solar, bioenergy and geothermal projects, as applicable. Any potential solar sub-projects would be managed in line with 'The Proposed Management Approach for Solar Supply Chain Risk Management' and any subsequent guidance developed under that approach. The project is consistent with the GET approach and the GET share is 100%, and up to 1.7x of EBRD's investment will be allocated to GET-eligible projects. The Project has a defined use of proceeds and is determined Paris aligned based on the application of the Bank's Paris alignment methodology for indirect finance.

Technical Cooperation and Grant Financing

None.

Company Contact Information

Xenofon Damalas
investor_relations@piraeusholdings.gr
(+30) 210 333 5818
https://www.piraeusholdings.gr/en/
Amerikis 4, 105 64, Athens, Greece

PSD last updated

26 Jan 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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Piraeus Synthetic Securitisation (Ermis II)

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)