27.10.2020

The Banks support the development of the Hellenic Electricity Transmission System

The National Bank of Greece, Piraeus Bank, Alpha Bank and the Bank of China support the investment plan that IPTO implements.

The National Bank of Greece, Piraeus Bank, Alpha Bank and the Bank of China support the investment plan that IPTO implements for the development of the Hellenic Transmission System through the 400M syndicated loan facility to the Independent Power Transmission Operator.  At a special ceremony held in Athens and attended by the Minister of Environment and Energy, Mr. Kostis Hatzidakis, the chief officers of the Greek banks and the BOC representatives expressed their satisfaction with the financing of one of the major investment plans being implemented today in the country. They also highlighted the need for the banks to act together to finance the big projects aiming at Greece's economic growth on the optimal and most sustainable terms.

The six-year syndicated bond loan was signed by IPTO and the four creditor banks on September 25th, 2020 and issued on September 28th, 2020. The issue of the facility aims to refinance the existing loans of the Operator and cover the needs in working capital. The National Bank of Greece is the Coordinator, Piraeus Bank is the Co-Arranger, jointly acting as structuring banks, whilst Alpha Bank and the Bank of China are participating banks. This is the first time that Greek and Chinese financial institutions collaborate in the Greek market.

The Minister of Environment and Energy, Mr. Kostis Hatzidakis, stated: “I would like to express my satisfaction for the issue of the first syndicated loan facility agreed by Greek and Chinese banks and which will be used to finance the country's and IPTO's major “green” investments. Undersea interconnections of the islands bring multiple benefits: they reinforce electricity security on the islands and help to cease the operation of PPC polluting plants, also taking the €700M burden off taxpayers annually thanks to the reduced special tariff. The government supports this policy and I am glad to see that the banks are in support too of a modern perspective of financing green projects, also incorporating financing of RES, waste management, green entrepreneurship in general.”

Chairman &  CEO of IPTO, Mr. Manos Manousakis, stated: “The new 400M syndicated loan that we signed with the National Bank, Piraeus Bank, Alpha Bank and the Bank of China is a strong vote of confidence to IPTO and its €5BLN investment plan that we will be implementing within the next ten years. IPTO is today the biggest energy investor in the country and we are very happy to see Greek and Chinese banks supporting our work in network development. Financing through this facility will secure necessary cash for IPTO so we can speed up our projects and also improve its equity, which will work to the benefit of all electricity consumers in Greece.”

CEO of the National Bank of Greece, Mr. Pavlos Mylonas, stated: “Competitiveness in the Greek market is dependent on the country's new energy policy. We are letting “dirty” energy go and moving towards green energy. This requires interconnections and IPTO holds the key role in this respect. We, at National Bank of Greece, along with the other structuring banks of the syndicated loan, are proud to support and finance this work, and the ones to follow in the years to come.”

CEO of Piraeus Bank, Mr. Christos Megalou, stated: “We, at Piraeus Bank, have consistently supported investment aiming to improve infrastructure, contributing to economic growth. We will continue to offer our support to all sectors, especially those oriented towards a sustainable future and making utmost use of the latest financial tools available and the opportunities provided by the EU Recovery Fund. The transformation of the Greek economy into a modern and sustainable economy is an opportunity, mainly a condition for the future, and Piraeus Bank has a leading position is supporting such transformation.”

CEO of Alpha Bank, Mr Vassilios Psaltis, stated: “To us, at Alpha Bank, supporting energy transformation in our country is a strategic choice and consistent action, even in difficult circumstances as those caused by the pandemic. We are happy to be part of the new syndicated loan of IPTO, issued to support its development plan, and we thank IPTO Management for this. We share the same goals, that is:  

•        Reduce environmental footprint and support green economy by adopting cleaner and more efficient electricity supply;

•        Ensure electricity adequacy required for bringing economic growth and tourist sector development in our country, and

•        Improve competitiveness of the Greek economy by reducing energy cost for businesses and households.

This is an initiative of national significance to which Alpha Bank offers its decisive support!”  

Deputy General Manager of the Bank of China, Luxembourg, Mr. Guo Zhiyao, stated: “The participation of the Bank of China in IPTO's new syndicated loan highlights both our lasting support to the Company and BOC's strength to consistently contribute to the financing of development projects that are significant to the Greek economy. This is the first time that Greek and Chinese financial institutions collaborate in the Greek market and we are optimistic that it is just the starting point of collaboration between banks of the two countries. The Bank of China plans to grow more in the local market, aiming to build bridges between Greece and China in the financial sector.”