Translated version of this PSD: Greek
A Greek Corporate Bond Framework ("Framework") to support the development of the local capital market in Greece by: a) signalling the Bank's commitment to develop the local corporate bond market; b) launching a dedicated framework to respond quickly to emerging demand; c) building market capacity thereby adding to depth and liquidity; d) supporting access to finance through the capital markets for SMEs and midcaps; and e) demonstrating to potential investors the viability of new issues.
The Framework aims to support the development of the local corporate bond market in Greece and facilitate access of Greek corporates to the debt capital markets by participating in public issues which will be listed on Athex or other recognised European Exchange/ATS platforms. A wellfunctioning bond market expands companies' access to credit and provides alternative means of financing which is particularly relevant in Greece today where bank lending is constrained by the high level of NPLs.
EBRD's participation as long-term investor will help build issuer momentum and investor interest by signaling potential market uptake for a series of issues, thereby encouraging sustained issuer presence and investor participation.
The transition impact of the Framework will be derived from two main sources:
1. Demonstration effects of new ways of financing: The Framework aims to demonstrate the viability of bond financing in the local capital market for a broad range of Greek corporates, while simultaneously broadening the investor base. The local corporate bond market has substantial development potential, as there has only been a few non-convertible corporate bond issuance so far. Participating in a number of issues over the near term will help build critical mass for outstanding bond issues needed to create pricing benchmarks, and develop market liquidity.
2. Standards for governance and corporate behaviour. While currently there are basic requirements for disclosure for local currency bond issues, there is room for improvement towards international standards. The local currency corporate bond issues supported as part of this framework will aim to increase secondary market activity as higher levels of disclosure will encourage more investors to enter the market
The Framework will be available for Greek corporates, excluding banks and non-bank financial institutions. The Framework will not concentrate on a specific set of corporates or sectors but will be available to issuers across various sectors and sizes ranging from SMEs (currently 98% of Greek corporates) to large corporates.
EBRD Finance Summary
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Environmental and Social Summary
The Framework itself is not categorised; however, each sub-project will be categorised on a case by case basis and will be subject to individual environmental and social due diligence (ESDD). The ESDD for each sub-project will be determined on the basis of the specific use of proceeds, especially where this involves investment projects. Due to the capital market transaction rules, the ESDD will rely on publicly available information, the prospectus/offering circular and other information provided to all potential investors. Therefore, the Bank may not be able to undertake sub-project specific ESDD in accordance with its 2014 Environmental and Social Policy (ESP). The Bank will agree with each Issuer a Framework Agreement and an Environmental and Social Action Plan to structure each sub-project to meet EBRD Performance Requirements (PRs) and require the Issuer to use the proceeds in a manner compliant with the Bank's PRs. Where this is not possible, derogation to ESP for the sub-project may need to be sought from the EBRD Board of Directors. Category A subprojects will be submitted to Board for approval regardless of their size.
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Public Information Policy (PIP)
The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP
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 how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.