GREECE – European Bank for Reconstruction and Development (EBRD) has approved a €10 million (US$10.25 million) loan to Greece’s A. Hatzopoulos for green transition project.

The loan spanning seven years will partially finance the company’s €12.5 million (US$12.81 million)investment plan, the acquisition of new machinery and the creation of more reusable and sustainable products through research and development (R&D) program focused on the circular economy will facilitate its transition.

As part of the agreement, EBRD will finance €3.75 million (US$3.84 million), mixed with €6.25 million (US$6.40 million)of RRF loans given through the Greek Ministry of Finance.

The state-of-the-art machinery will significantly reduce the firm’s energy consumption, while R&D will support its ambitious goal of developing a 100% recyclable product portfolio by 2025.

This is in line with the EBRD’s objective of making more than 50 percent of its annual investments green by 2025.

Andrea Moraru, EBRD Regional Head for Greece and Cyprus, said: “Our investment will support the Greek family-owned company in achieving its ambitious ESG goals at a time of increasing demand for sustainable packaging globally.

“It will also promote energy efficiency and pave the way for the company’s transition to a greener future in line with the objectives of the circular economy.

“This second project under the EBRD’s Greek RRF co-financing framework establishes a significant track record in supporting the implementation of Greece’s ambitious National Recovery and Resilience Plan This helps the export-oriented company to remain competitive at the regional and EU level.”

Commenting on the agreement, Greece’s Alternative Finance Minister Theodoros Skylakakis said: “The signing of the EBRD’s second loan under the National Recovery and Resilience Facility, “Greece 2.0”, is close to signing the first transaction. Amidst the tightening of interest rates at a level marked by attractive financing costs.

“With secured resources, A. Hatzopoulos SA will be able to implement its targeted investment program, ultimately strengthening its export orientation while enabling the company’s green transition in recognition of “Greece 2.0″ for potential investors, market interest in such financing instruments is increasing, with the pace of implementation steadily increasing.”

The bank is closely working with the government of Greece to implement the country’s National Recovery and Resilience Plan and deploy funds to the Greek economy.

The Bank’s program will combine RRF loans managed and deployed by the EBRD, the Bank’s own commercial financing, and funding from private investors and commercial banks, to achieve significant multiplier effects.

To date, the EBRD has invested more than €5.8 billion (US$5.94 billion) in 91 projects in the corporate, financial, energy and infrastructure sectors of the Greek economy.

Liked this article? Subscribe to our regular email newsletters with the latest news insights from Africa and the World’s packaging and printing industry. SUBSCRIBE HERE.