EIB strengthens strategic dialogue with HCAP to maximize impact, both technical and financial, in Greek public investment projects and in particular with the companies included in HCAP portfolio
The European Investment Bank (‘’EIB’’) participated in the 3rd Business Meeting organized by HCAP in May 9th, 2019 with the participation of senior management from 16 of its subsidiaries (HRADF, ETAD, PPC, EYDAP, EYATH, OASA, STASY, OSY, GAIAOSE, TIF HELEXPO, ETVA VIPE, ELTA, OKAA, KATH, HELLENIC SALTWORKS, CORINTH CANAL). The meeting enabled a creative dialogue on investment projects across a broad range of sectors and explored financing alternatives, including access to diversified sources of funding, such as the NSRF, the new ‘’Infrastructure Fund’’, corporate lending, structured finance and capital markets.
The EIB is the EU bank, owned and governed by all Member States. It is the world’s largest international public bank and the lending arm of the European Union since 1958. The Bank is focusing on providing financing in the areas of innovation, environment, infrastructure and SMEs, while 25% of its funding is focused today on environmental investments. In particular, EIB is today the world’s largest financier of water and a global pioneer of renewable energy, two sectors where there is strong investment pipeline for good quality services and clean energy.
EIB has a long presence in Greece. Only last year EIB provided EUR 1.9 billion of new financing, including support for energy schemes and public services. Total EIB current exposure to Greece represents more than 10% of the country’s GDP. The EIB is committed to ensuring that future public sector lending in Greece will have maximum economic and social impact and meets national strategic priorities.
The EIB has a unique financial and technical experience of supporting long-term investment around the world in sectors covered by HCAP portfolio of companies. The dedicated EIB Investment Team for Greece has a deep understanding of the specific needs and impact priorities for investment in core sectors of the Greek economy. At the HCAP meeting, key EIB representatives outlined available financial instruments and financing structures available in Greece, including specialized products for large public corporates and infrastructure. The EIB also introduced the new European community program “Infrastructure Fund”, which will be launched shortly and is the successor to the successful JESSICA program that was recently completed.
Mr. Ioannis Kaltsas, Head of Division for Greece & Cyprus Operations, stated at the end of the conference ‘’Technical and financial expertise gained from across Europe benefits new investments and through our dedicated teams for Greece the EIB can strengthen the bankability and impact of new investments in Greece. HCAP is a key partner with an important role to play in maximizing the impact of public sector companies financing and investments.’’
For the Hellenic Corporation of Assets and Participations (HCAP), organizing this 3rd Business Meeting amongst its subsidiaries, and with the presence of key financial stakeholders and authorities, was of particular importance as it practically lays the foundations of an active dialogue and collaboration between HCAP’s subsidiaries with key financial institutions and the EIB in order to accelerate the maturing and financing process of both large investments in infrastructure and smaller investments in technology and innovation, digital, energy efficiency and climate change.
Since many HCAP subsidiaries are large enterprises which operate in core sectors of the Greek economy (notably power, water and sewerage, urban transportation, real estate, wholesale food markets and postal services), investment initiatives can have significant broader benefits and improve the overall economic climate. Alongside enabling better operational efficiencies, improved customer experience and improving the environmental and social value of such companies, new investments can offer better, smarter and greener products and services to Greek customers and users.
Indicative areas for investment, apart from the large infrastructure projects relating to energy, ports, airports, marinas, motorways and logistics centers, also include expansion, automation and upgrades of water and sewerage networks, treatment of urban waste, energy efficiency in buildings, renovation of rolling stock, fleet renewal, integrated fuel management system, smart mail boxes, Business Intelligence and data management, data driven supply chain and logistics, telematics, GIS, and others.
Mrs. Ekaterinari, CEO of HCAP stated, “HCAP is looking forward to continuing its strategic collaboration with the European Investment Bank in order to maximize the positive effect, both technical and financial, of the EU Bank’s engagement in Greece. We aim our collaboration to be a key element of future public sector financing, where through commitment and appropriate planning by our subsidiaries and expertise from the EIB, we can identify and focus on investment schemes which can secure the necessary financing’’.
In conclusion, EIB and HCAP aim to enhance their collaboration, with HCAP seeking to accelerate investments and maximize the impact of financing state owned enterprises.