Green Investments II program in cooperation with the EIB

The objective of the program is to strengthen access of SMEs and MidCaps to bank financing on particularly favorable terms for the implementation of investment projects that contribute to the delivery of green tagging action objectives and, in particular, generation of energy from renewable energy sources (RES), such as solar energy, biomass, biogas, wind energy or other forms of RES, offering additional incentives to businesses that support employment with an emphasis on young people.

For as long as the financed business satisfies all eligibility criteria for financing by the EIB, NBG grants to the beneficiary of this loan a financial bonus reflected in the interest rate, which is at a discount compared with the annual interest rate that would be charged by NBG on a similar loan without the participation of the EIB.

In addition, if the beneficiary meets the eligibility criteria set by NBG for participation in the Jobs for Youth Initiative, an additional financial bonus is offered in the form of an interest rate reduced by 0.20% (or 20 bps) compared with the annual interest rate that would be charged by NBG on a similar loan without the participation of the EIB.

• They are established, operate and will invest within Greece
• They are not active in non-eligible sectors, as such are described hereinbelow as “Businesses non-eligible for financing,
  and 
• They are either SMEs that employ up to 250 staff, in terms of Annual Work Units (AWU), or
• They are MidCaps that employ from 250 up to 3,000 staff in terms of annual work units (AWU).

Non-eligible businesses and financing activities are: 

The eligibility of the interested companies is determined pursuant to NACE codes as such are provided by the EIB to the Bank.

Irrespective of the eligibility of a NACE code relating to the main activity, any interested business involved in any kind of the following activities is not eligible for financing by the EIB:

• activities targeting the production or trade of weapons and ammunition, explosives, equipment or infrastructures specifically designed for military or police use, and equipment or infrastructure which result in limiting people’s individual rights and freedom or in violation of human rights;
• activities which give rise to environmental impacts that for the most part cannot be mitigated and/or counterbalanced (including but not limited projects in protected areas, critical habitats and heritage sites);
• activities considered ethically or morally controversial or impinged on or forbidden by national legislation, for example animal testing and research on human cloning;
• activities prohibited by national legislation (only where such legislation exists), for example genetically modified organisms (GMO), abortion clinics, nuclear energy, etc.

Furthermore and irrespective of the main activity of the concerned business, any revenues generated by the following activities should not exceed more than 10% of its annual revenues of said business:

• activities targeting the production or facilitating the use of gambling and related equipment;
• activities targeting production, processing, marketing of tobacco or specialist tobacco distribution, and activities facilitating the use of tobacco (e.g. “smoking halls”).

Except for the aforesaid exceptions related to excluded sectors or activities, financial holding companies, whose sole economic activity is to hold and to manage portfolios of equity participations and/or investments in other companies, are not eligible.

Beneficiaries of the Jobs for Youth Initiative are businesses that meet one of the following criteria:

(b) in the last six months they have provided a vocational training or internship position to at least one young person (five in the case of MidCaps) or in the next six months (from the date of signing the agreement) they plan to provide a vocational training or internship position to at least one young person (five in the case of MidCaps). The training/internship lasts at least three months and is provided for in a valid cooperation agreement with a technical school, university or public employment organization and/or is confirmed by a letter signed by such Organizations and/or is part of the standard vocational training or internship program of the business financed hereunder, or

(c) in the last six months they have participated in a young entrepreneurship program of a Non-Governmental Organization or educational institution, or they plan to participate in such a program in the next six months.

The purpose of the financing is to support investment projects by SMEs and MidCaps for energy production from RES, in amounts up to €12.5 million under total budgets of up to €25 million, by all companies that are established, operate and plan to invest within Greece, but also in other EU member states, which projects have been undertaken in the last 3 years as of the date of signing the financing agreement with the firm and have not reached completion 6 months before that date.

The following expenses are not included:

• Purely financial transactions not related to additional capital expenditure or the company’s business activity
• Purchase of goodwill, licenses or rights for mineral resource exploitation and production rights in the agricultural sector

The loan may not be used for real estate activities or for the provision of consumer loans. Real estate activity that is excluded from the EIB financing includes the purchase, construction or renovation of real estate with the purpose of selling or renting the building to a third party. 

Investment categories.

Investments and expenses that may be included in the Investment Plan include:
Purchase, renovation and expansion of tangible assets, including land only if it is technically necessary for the investment, by up to 10% of the amount of the financing. Purchase of farmland is not included.

• Investment in intangible assets, as follows:

i. RDI expenses (including gross wages directly linked to the company's research, development and innovation assets and development costs of concessions, patents, licenses, trademarks and similar rights and assets)
ii. purchase of software licenses and other rights and assets with inherent production potential
iii. purchase of other intangible assets, such as licenses to use non-generated public resources, patents, trademarks and similar rights and assets, up to 10% of the cost of the investment project.

• Change of generation (e.g. retirement of the previous owner) or staff-related change of business status. Financing in such cases aims at keeping the firm in active business, provided however that the buyer and the business for sale is an eligible SME and the total financing does not exceed €5 million (excluding own funds).

Excluded for the financing under this Program are the following investment categories:
(i) purchase (or construction or renovation) of property for the purposes of sale or leasing the same to a third party, unless it is related to the construction of social housing, shopping malls and/or offices for the purpose of leasing the same to third parties;
(ii) consumption spending;
(iii) purely financial transactions not related to additional capital expenditure or the company’s business activity (including the trading of listed shares, other securities or any other financial product, the business’s refinancing and other) including change in the ownership structure (e.g. merger and acquisition of the business);
(iv) businesses with political or religious content;
(v) investments in the health sector with security units, closed psychiatric and/or correctional centres;
(vi) investments in the health sector that do not respect the common values and fundamental principles of EU health policy (sustainable solutions for society based on scientific evidence and equity of access);
(vii) new gas boilers of any capacity, replacement of large gas boilers with a capacity greater than 20 MWth;
(viii) extraction, processing, transport and storage of coal;
(ix) oil exploration and production, refining, transport, distribution and storage;
(x) gas exploration and production, liquefaction, regasification, transport, distribution and storage;
(xi) electricity generation exceeding the CO2 emission performance standard (i.e. 250 grams of CO2-equivalent per kWh), applicable to power plants and fossil fuel cogeneration, geothermal and hydroelectric installations with large tanks;
(xii) heat production/ combined cooling, heat & power generation and supply (CCHP, CHP), with the exception of:
(a) heat production using renewable fuels or eligible combined generation;
(b) replacement of existing small and medium gas boilers with a capacity of up to 20 MWth unless it meets the minimum energy efficiency criteria, defined as A rated boilers in the EU (applicable to <400kWth) or boilers with efficiency > 90%;
(c) restoration or expansion of existing district heating networks, which is eligible if CO2 emissions do not increase as a result of burning coal, peat, oil, gas or inorganic waste on an annual basis,
(d) new district heating networks or significant extensions of existing district heating networks, which are eligible if the network uses renewable energy sources at least by 50% or waste heat by 50% or heat cogeneration by 75% or CHP by 50%; 
(xiii) construction of new buildings and significant restoration of existing buildings (more than 25% of the surface or 25% of the value of the building excluding land), which do not comply with the national energy standards set out in Directive (EU) 2018/844 on the energy performance of buildings (EPBD). For projects related to energy/ heat generation using biomass, the following sustainability conditions for biomass products should be fulfilled:
(a) raw materials should come from non-contaminated biofuels within the EU or be certified for sustainability when originating from outside the EU;
(b) forest raw materials should be certified in line with international standards of sustainable forest certification;
(c) the use of palm oil products or raw materials from tropical forests/ protected areas is prohibited. Protected habitats include Natura 2000 sites as designated under EU law, habitats recognized under the Ramsar, Bern (Emerald Network) and Bonn Conventions, as well as areas defined or designated as protected areas by national governments.
Note that the above conditions for energy/heat/cooling generation apply also to primary projects not relating to energy, e.g. the production of flowers.

• The total budget for each Business Plan may be up to €25 million for SMEs and MidCaps of a maximum amount of €12.5 million.
• For business plans included in funding programs supported by the EU, the total financing from EIB funds and any financing from the EU may not exceed 100% of the investment value (subsidy and loan amount in aggregate).
• The form of financing through the Program concerns exclusively the purchase of fixed assets and, in particular, the provision of financing for the implementation of investments for energy production from renewable sources, such as solar energy, biomass, biogas, wind energy or other forms of RES.
• The loan term cannot exceed the economic and technical life of the investment being financed.\
• The minimum loan term is 2 years.
• Loan repayment can be made in quarterly or half yearly principal instalments with a grace period option of up to 2 years.
• Interest rate: 3month Euribor plus margin.
• Privileged pricing and exemption from the obligation to pay the charge under Law 128/75 (currently 0.60%).