By Olga Aristeidou
The European Bank for Reconstruction and Development (EBRD) is contributing to the European Union’s drive to introduce fully reusable or recyclable packaging by supporting the operations of A. Hatzopoulos SA in Thessaloniki, Greece. The firm manufactures flexible packaging for the food, household goods and pharmaceutical industries.
This is the second project under the EBRD’s Greek Recovery and Resilience Facility (RRF) Co-Financing Framework, implemented as part of the “Greece 2.0” National Recovery and Resilience Plan, funded by the European Union’s (EU) NextGenerationEU programme.
A seven-year loan of €10 million(US$10.19million) will partly finance the company’s €12.5 million investment plan, facilitating its transition to more recyclable and sustainable products through the acquisition of new machinery and a research and development (R&D) programme focused on circular economy. The loan consists of €3.75 million of EBRD financing, blended with €6.25 million of RRF loans channelled through the Greek Ministry of Finance.
State-of-the-art machinery will significantly reduce the firm’s energy consumption, while the R&D will support its ambitious target of developing a 100 per cent recyclable product portfolio by 2025. It will use part of the loan to boost its R&D capabilities and step up innovation with a view to accelerating plastics circularity with new, sustainable packaging solutions. This is consistent with the EBRD’s objective of making more than 50 per cent of its annual investment green by 2025.
EBRD Regional Head of Greece and Cyprus, Andreea Moraru said: “Our investment will support a Greek family-owned company in achieving its ambitious ESG targets at a time of growing demand for sustainable packaging globally. It will also promote energy efficiency and pave the way for the company’s transition to a greener future, in line with the objectives of the circular economy. This second project under the EBRD’s Greek RRF Co-Financing Framework sets an important track record in supporting the implementation of Greece’s ambitious National Recovery and Resilience Plan, helping an export-orientated company to remain competitive at regional and EU level.”
Alternate Minister of Finance for Greece Theodoros Skylakakis said: “Signing the EBRD’s second loan under the National Recovery and Resilience Facility, “Greece 2.0”, follows on closely from the signing of the first transaction. The loan offers favourable terms, marked by attractive funding costs amid tightening interest rates globally. With the secured resources, A. Hatzopoulos SA will be able to implement its targeted investment programme, ultimately strengthening its export orientation while enabling the company’s green transition. In recognition of “Greece 2.0” for prospective investors, there is growing market interest in such financing tools, with the pace of implementation constantly on the rise.”
Governor of the Greek Recovery and Resilience Agency Nikos Mantzoufas said: “Today’s signing between the EBRD and A. Hatzopoulos SA, utilising resources from the Recovery and Resilience loan scheme, demonstrates the significant contribution of the Recovery Fund in strengthening the Greek exporting industry by investing in circular economy initiatives and supporting the sector’s competitiveness in response to global challenges.”
President of A. Hatzopoulos, Eleftherios Hatzopoulos said: “We are pleased to deepen our cooperation with the EBRD. This transaction is an important milestone for our company and will allow us to make the decisive step towards fulling our ambitious responsibility targets. At the same time, it contributes significantly to the last stage of the modernisation of our production capacity, enabling us to continue serving our clients with top-quality, customised solutions focused on sustainability, in line with the global call for the full recyclability of flexible packaging.”
The EBRD is working with the government of Greece to implement the country’s National Recovery and Resilience Plan and deploy funding to the Greek economy. The Bank’s programme will combine RRF loans managed and deployed by the EBRD, the Bank’s own commercial financing, and financing from private investors and commercial banks to achieve significant multiplier effects. Funds totalling up to €1 billion will be deployed in Greece through the end of 2025.
To date, the EBRD has invested more than €5.8 billion in 91 projects in the corporate, financial, energy and infrastructure sectors of the Greek economy.
