Terna Energy

Location:

Greece

Project number:

48272

Business sector:

Power and energy

Notice type:

Private

Environmental category:

B

Target board date:

21 Sep 2016

Status:

Repaying

PSD disclosed:

26 May 2016

Translated version of this PSD: Greek

Project Description

A senior secured loan of up to EUR 50 million to Terna Energy SA (the "Company"), to finance the development, construction and operation of the Company's renewable energy power plants in Greece (the "Project").

Project Objectives

The Project will support the development, construction and operation of renewable energy power plants in Greece, which will support Greece in achieving the target to reach 40% of electricity consumption from renewable sources by 2020.

Transition Impact

The Project aims to both help Greece meet its renewable energy targets, as well as to facilitate the country's planned transition to a more market-based support mechanism for the development of renewable energy.

Client Information

TERNA ENERGY S.A.

The borrower will be Terna Energy SA, a company incorporated in Greece, owned by GEK Terna Group, Terna Energy's chairman George Peristeris, and a subsidiary of the American hedge fund York Capital. It is one of the largest and most respected renewable energy companies active in Greece. It directly owns and operates 110 MW of renewable energy projects and another 557 MW are indirectly owned by the borrower through special  urpose vehicles located in Greece, Bulgaria, Poland and the USA.

EBRD Finance Summary

EUR 50,000,000.00

Up to EUR 50 million senior secured loan alongside a parallel loan to be provided by a Greek commercial bank.

Total Project Cost

EUR 60,000,000.00

Approximately EUR 60 million

Environmental and Social Summary

Category B (2014). Environmental and Social Due Diligence ("ESDD") was undertaken by the Bank, which confirmed that the Company has good corporate governance and the capacity to fully implement the Bank's Performance Requirements ("PRs"). The ESDD focused on the Company's existing corporate E&S management capacity and capabilities and resulting policies and procedures.

In addition, the E&S performance of a selection of the Company's operations, planned and active projects, were also assessed inclusive of site visits.

As part of the ESDD, meetings where held with the Hellenic Ornithological Society (part of BirdLife International) to assess the sensitivity of current projects. The meeting was attended by some of the Company's representatives as part of their increasing stakeholder engagement process.

Furthermore, the Company confirmed it will undertake the Environmental Impact Assessment ("EIA") for any new project, in line with best practice and EU requirements inclusive of cumulative assessments.

Overall, the E&S governance structure of the Company is good and can be further strengthened in line with industry best practice. This requirement has been incorporated into the Environmental and Social Action Plan ("ESAP") which has been agreed with the Company, and whose implementation will be monitored by the Bank. The Company has also agreed to increase its transparency and engagement activities at a corporate level, including engaging with recognised specialist biodiversity NGOs and reporting of non-financial information.

The E&S risks and impacts associated with the Company's operations that will benefit indirectly from EBRD financing (expected to be 48MW of wind capacity) have been confirmed to be readily identified and mitigated. In addition, it has been confirmed that these projects in themselves would not trigger Category A requirements. The agreed ESAP therefore ensures that any future projects developed by the Company that would trigger Category A requirements would need to be treated as such, and would be structured to meet EBRD's PRs. The Company has agreed to disclose relevant information on the project and a Non-Technical Summary ("NTS") for future projects on the Company web site.

Non-technical summary

Technical Cooperation

None.

Company Contact Information

Telis Spiliotis
info@terna-energy.com
+30 210 6968300
+30 210 6968096
www.terna-energy.com
TERNA ENERGY S.A. 85, Mesogeion Ave. 11526 Athens, Greece

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

General enquiries

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Email: projectenquiries@ebrd.com

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

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.