Specialised Financing Solutions

Utilizing Piraeus Bank's longstanding and rich experience in financing projects and investment plans as well as in planning and implementation of complex financing structures, key element of Development Banking is the provision of financial support through specialised solutions and financial products as indicatively described below:

Project Finance

The “Project Finance” model is implemented mostly through concession, self-financing or co-financing methods, through special purpose vehicles (SPVs), governed by the going concern principle. These SPVs are autonomous and the repayment of their debt obligations is based on the future cash flows of the financed investment.

Through the project finance model, a rational allocation of assumed risk among all parties is achieved, while ways of minimizing all factors that might jeopardise the viability of the investment are evaluated and specified.

Project Bonds

The Project Bonds arrangement is an alternative means of financing long-term investment plans. Through a standardised approach, risk and return classification and the adoption of specific characteristics of international practice, Project Bonds may operate as a lever attracting international or domestic funds.

Project Bonds bring new dynamics to the financing of long-term viable investments, providing access to the global market and to institutional investors. At the same time, Project Bonds can serve as important assets for funds that wish to participate in investments, primarily in the sectors of infrastructure and energy.

Guarantee Facilities

The introduction of guaranteed repayment loan products, functions as a tool for "unlocking" liquidity constraints in financing investments by using dynamic risk allocation among finance providers.

Guarantee Facilities operate supplementary to European financing programs or other traditional forms of funding while (similar to Project Bonds) they may add more value to the investment through the reduction of financing costs, thus improving the investor’s Internal Rate of Return.

Tailor-Made Financing Products

Combined with existing sources of funding, Piraeus Bank Development Banking provides the possibility of designing specialised financing products tailored to the specific characteristics and the targeting of each investment plan.

The provision of specialised solutions aims at aligning the form and conditions of funding with the viability requirements of the projects.