PF4EE Financial Instrument

Piraeus Bank participates in the European Investment Bank’s (EIB) and European Commission’s (EC) joint instrument Private Finance for Energy Efficiency (PF4EE) with the aim of providing debt financing with favourable terms to businesses wishing to invest in improving their energy efficiency. PF4EE is an innovative financing tool that combines liquidity in the form of an EIB Loan and loan guarantees funded through the LIFE Programme of the European Commission. 
IDEAL FOR
Investments that achieve improvement of the energy efficiency of:

  • buildings,
  • outdoor lighting systems, and
  • Industrial production processes
REPAYMENT METHOD
  • Monthly
  • Quarterly or
  • Semi-annually instalments

Grace Period of up to 12 months
INTEREST RATE
Floating Rate
based on

EURIBOR 1M/3M/6M
+ margin,
reduced compared to the margin if the company was financed with funds of the Bank
OTHER FEATURES
  • Exception from the charge payable pursuant to Law 128/75
  • Favorable pricing for eligible businesses
  • Additional reduction in pricing for companies that support youth employment (young people 15-25 years old)
IDEAL FOR
Investments that achieve improvement of the energy efficiency of:

  • buildings,
  • outdoor lighting systems, and
  • Industrial production processes
REPAYMENT METHOD
  • Monthly
  • Quarterly or
  • Semi-annually instalments

Grace Period of up to 12 months
INTEREST RATE
Floating Rate
based on

EURIBOR 1M/3M/6M
+ margin,
reduced compared to the margin if the company was financed with funds of the Bank
OTHER FEATURES
  • Exception from the charge payable pursuant to Law 128/75
  • Favorable pricing for eligible businesses
  • Additional reduction in pricing for companies that support youth employment (young people 15-25 years old)

Eligibility criteria

Through this financing tool, there is the possibility of providing long-term investment loans, focusing on energy efficiency improvements. The loan amount could be:

  • from €40,000 and up to €5,000,000 for businesses that qualify as small and medium-sized enterprises (SMEs) or for building-related energy renovation projects
  • from €40,000 and up to €1,125,000 for companies that do not qualify as SMEs and projects not related to buildings’ renovations

The eligible interventions are related to:

  • energy efficiency improvements of existing industrial or commercial buildings.
  • energy efficiency improvements in industrial processes and premises without a significant increase in production capacity.
  • Installation of PV systems for own consumption through net metering schemes.
  • energy efficiency improvement of outdoor lighting systems.

Financing features

Medium-Long term investment loan

  • Loan Duration: 4 to 12 years

Interest rate

Variable interest rate based on :

  • Euribor 1Μ/3M/6M
  • margin, reduced compared to the margin if the company was financed with funds of the Bank

The determination of the final interest rate takes into account the assessment of the client’s Creditworthiness and the financing characteristics. Interest rates are exempted from the charge of the Law 128/1975 levy, currently at 0.60% (or 0.12% where this is foreseen).


Repayment method

  • In monthly, quarterly or semi-annually instalments

Eligible Beneficiaries

  • Businesses of all types and legal form

Exceptions

  • Businesses that are characterized as "firm in difficulty" or bankrupt
  • Businesses engaged in illegal activities in accordance with the applicable national law.
  • Businesses that focus their activity on one of EIB’s excluded sectors (eg production and marketing of weapons and ammunition, gambling, production and marketing of tobacco products, human cloning or pure real estate development activities and etc. )

Jobs for Youth Initiative

The European Investment Bank supports financing of SMEs and MidCaps that operate in European Union Member States. EIB recently launched a jobs for youth initiative (“Jobs for Youth Initiative”) that support the employment of young people (age ranging from 15-25 years old).

Through this initiative, companies that support the employment of young people with one of the following ways, can obtain financing in more favourable terms. Specifically:

  • If the Borrower has hired in the last 6 months and still employs at least 1 (5 for MidCap enterprises) young person or plans to hire at least 1 young person (at least 5 for MidCap enterprises) in the coming 6 months, calculated from the signature date of the loan agreement; and/or
  • If the Borrower offers vocational training/internships/training programmes for young people (as defined above) and there is a recent track record of young people benefiting from these trainings; and/or
  • If the Borrower has active cooperation agreement(s) with a technical college or school or university to employ young people (as defined above) e.g. during summer internships, and there is a recent track record of young people benefiting from these cooperation agreements.

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The Private Finance for Energy Efficiency (PF4EE) instrument has benefited from the support of the European Union under the LIFE Programme.