Development Banking
New funding model by Piraeus Bank
Through a new wholesale banking model, Piraeus Bank responds comprehensively to the need of financing Greek businesses for the implementation of new investment initiatives in sectors which are essential for the development of the Greek economy.
The “Development Banking” plan, announced today by Piraeus Bank, constitutes a pioneering initiative, aiming at coordinated and targeted utilization of investment funds and specialized financial instruments, domestic as well as European. “Development Banking” is based on reducing the risk and cost of financing of new investments and businesses that will implement sustainable investment plans and projects with multiplying socio-economic benefits, effectively contributing to relaunching the economy.
Which investments will be eligible
Through “Development Banking”, Piraeus Bank will finance investment projects of a minimum estimated budget of 2.5 mil. Euros, focusing on infrastructure, tourism, energy and energy efficiency, climate change, sustainable development, agri-food industry, production extroversion, innovation and technology.
The main criteria for the evaluation and eligibility of investment plans in Development Banking are:- The specific characteristics of the sponsor (experience, financial status etc.) and its strong commitment to carry out the investment plan.
- The viability and profitability potential of the investment, based on the feasibility analysis of the business plan, the industry ’s prospects and,
- The contribution of the investment plans to the economic and social development of the country (increase of employment, protection of the environment, enhancement of competitiveness and the improvement of the living standards in the country).
For the implementation of the business plan of the investments, Piraeus Bank may provide comprehensive support, through a selection from a wide range of instruments that may be applied according to the type, the specific features and cost of each investment plan:
- Specialized Financing Solutions
- These include Project Finance, Project Bonds, Guarantee Facilities, Tailor-Made Financing Products, designed on the basis of the specific features of each investment plan, aiming at aligning the form and terms of funding with the viability conditions of the projects.
- Utilization of European Financial Instruments
- These include financial instruments such as the JESSICΑ program, the JEREMIE program, Global Lending Instruments including bank lending in cooperation with the European Investment Bank (EIB) “EIB – Grouped Loans” under favorable terms through European Investment Bank (EIB) resources, loans in cooperation with the Hellenic Investment Fund (IfG), Financial Instruments 2014-2020, and financing through the European Strategic Investment Fund (EFSI).
- Access to Domestic and International Investment Funds
- Through Development Banking, eligible investment plans may gain access to domestic and international investment funds. The participation of these funds may be implemented either directly as part of the share capital of the business or through the issuance of Subordinated or Mezzanine loans. Through this participation, further private capital is leveraged, aiming to form the optimal funding scheme which, combined with debt, may serve all parties’ objectives.
- Consulting Services in all Stages of the Investment
- Aiming at ensuring the success of Development Banking projects, Piraeus Bank may further assist the investment plans through its experience and know-how in domestic entrepreneurship, by providing a full range of consulting services, including financial advisory, technical advisory and project management services, during all stages of the investment implementation.
Athens, 7 March 2016