EBRD in first deal under €300m Greek renewables scheme

The bank subscribed to €28.3m in Hellenic Petroleum bonds under an issuance that will support 190MW of solar and wind projects.

The European Bank for Reconstruction and Development has subscribed to €28.3 million in bonds issued by Greece’s Hellenic Petroleum, the first deal under the bank’s €300 million renewable energy framework for the country.

The funding will back the Athens-based oil company’s effort to diversify into the renewables sector. The investment came under the second half of a two-tranche €450 million issuance by the company, which also saw backing from the Black Sea Trade and Development Bank and will support 190MW of solar and wind projects.

In March, the EBRD approved the framework to finance renewables and projects that improve efficiency.

“Our new renewables support scheme in Greece lays a sustainable foundation for the development of the sector, in particular by using a competitive mechanism,” said Harry Boyd-Carpenter, EBRD director of power and energy. “The success of such a strong and experienced company as Hellenic Petroleum is a real endorsement for that mechanism.”

A renewable energy law passed by the Greek government last August allows for feed-in premiums and competitive tenders for renewable projects, changes which the EBRD cited in approving its framework. Greece has set a target of adding 2.4GW of renewables capacity by 2020.

Hellenic Petroleum launched its own renewables platform in 2006.

“The EBRD’s commitment to Greece and the renewables sector is aligned with our own strategy and supports economic growth and investment in the country,” said Andreas Shiamishis, Hellenic Petroleum deputy chief executive.

For the EBRD, the framework comes as part of its Green Economy Transition approach, under which the bank aims to increase its annual investment in green energy to 40 percent by 2020.