PIRAEUS BANK GROWTH4MIDCAPS LRS II

Risk-sharing instrument aimed at supporting mid-caps in Greece that are active in sectors that are in line with the EIB's long-term mission.

Enhance access to finance for mid-caps in Greece that are active in sectors that are in line with the EIB's long-term mission.

Guarantee instruments, such as the presented one, are an effective tool to deliver policy objectives by providing advantages to Financial Intermediaries for the ultimate benefit of final beneficiaries. More specifically, they offer to Financial Intermediaries alleviation of limit concentrations on individual obligors/obligor groups/sectors, credit loss protection, capital relief, thus serving to increase risk appetite and create additional lending capacity. As a result, they help address the underlying market failure of Access to Finance faced by Mid-Caps due to information asymmetries and credit considerations, by making available to them new financing at typically beneficial terms in the form of reduced interest rates, longer maturities, lower collateral requirements, increased volumes. Therefore, the proposed operation is fully in line with the EU and the Bank's strategic objective to support uninterrupted access to finance for Mid-Caps, which, in the case of Greece, the Bank cannot easily support directly given the, typically, relative small size of such individual loans. On top of this, given the targeted region Greece, the operation shall contribute 100% to Cohesion. Moreover, given the economic uncertainty exacerbated by supply chain constraints, inflation, rising interest rates, energy security constraints and the ongoing war in Ukraine, the proposed operation aims to alleviate some of the pressures faced by the real economy, thus contributing to sustaining long-term economic growth. The Financial Intermediary is an established player in the local market and a repeat client of the EIB, with excellent track record in implementing EIB products, including guarantees. This product is innovative for the Greek market, complements EIF offerings and is generally expected to carry a signalling effect, thus reducing risk perceptions and serving to crowd in other private financiers.

The proposed operation falls within the scope of the EIB's Environmental and Social Standards - "Standard 11 Intermediated Finance". The Borrower / Financial Intermediary has adequate capacity, systems and processes in place for identifying, assessing, managing and monitoring environmental, climate and social (ECS) risks related to the potential sub-projects benefitting from EIB support. The final beneficiaries will be required to comply with applicable national and EU legislation in respect of environmental and social matters, as appropriate.

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.