This is the first sustainability-linked bond to be listed on the Athens Stock Exchange, the EBRD said in a press release on Wednesday.
Gek Terna will use the funds to finance its business activities in the infrastructure, energy, industrial and real estate sectors, refinance existing and future debts and finance working capital needs. The proceeds of the EBRD’s participation will be used exclusively for refinancing and working capital purposes, the bank said.
The company plans to reduce its CO2 emissions by 25% by the end of 2025 compared to 2021 under the bond's sustainability performance target. Not meeting this target would lead to a 0.20% increase in its coupon.
Gek Terna operates companies active in the concessions, renewable energy, thermal energy and construction sectors in Greece, central and south-eastern Europe and the Middle East.
(SeeNews, December 16, 2021)