Release date: 28 March 2022
Promoter – Financial Intermediary
BISCUIT AND FOOD PRODUCTS MANUFACTURING COMPANY E J PAPADOPOULOS SALocation
Description
The project concerns investments related to new bread production capacity, energy efficiency measures for the plant, as well as research, development and innovation (RDI) activities.
Additionality and Impact
The project concerns investments of the Promoter related to new bread production capacity, energy efficiency measures for the Oinofyta plant, as well as research and development activities of the Company.
This bio-economy project located in Greece aims at supporting the local economy by i) enhancing plant's bread production capacity, ii) upgrading the current operational setup at plant level through modernized equipment in order to optimize energy and resource utilization and iii) RDI activities at company level. The project takes place at the existing factory in the Oinofyta industrial area, located in a Less Developed Region of Greece. Thereby, the project is aligned with the Bank's Climate action objectives.
The project will address a series of market failures: it will generate positive knowledge externalities as well as public health benefits through research and development activities and higher food quality, and reduce the environmental negative externalities through the proposed activities resulting in lower energy consumption and emissions.
The operation improves borrower's access to credit and mitigates adverse impacts of asymmetric information confronted with SMEs and MidCaps that are not externally rated. Being located in a Less Developed cohesion region, the project further contributes to economic and social cohesion in the EU.
The EIB's financial contribution is considered valuable to the Promoter, as the Bank is offering a loan maturity that is in line with the economic life of the project. The EIB will also allow the Promoter to diversify its funding sources, whereas the signalling effect of the Bank's support to the project could also help unlock additional financing, if needed.
Objectives
The new automatised and highly efficient production line will support the Promoter's strategy to provide high quality products to the local market. The energy efficiency measures implemented will generate savings at plant level, including both existing and new production lines. By supporting RDI activities, the project will generate innovation and knowledge in the bio-economy sector. Through anticipated spillover effects towards the local and regional economy in a predominantly rural area of Greece, the project is further contributing to territorial integration within the EU through rural development.
Sector(s)
- Industry - Manufacturing
Proposed EIB finance (Approximate amount)
EUR 25 million
Total cost (Approximate amount)
EUR 50 million
Environmental aspects
The project is aligned with the EU Green Deal, Climate Action objectives, and the EU Bioeconomy strategy. The project falls under the scope of Annex II of the EIA Directive 2014/52/EU, amending the EIA Directive 2011/92 and is not subject to a full environmental impact assessment (EIA) process, as determined by the competent authorities. The project includes measures generating energy efficiency at factory level, thus reducing the environmental footprint of the Promoter.
Procurement
Although the Promoter is a private company not operating in the utilities sector, and is thus not covered by EU directives on procurement, the Bank will require the Promoter to ensure that any procurement procedures are done in accordance with the relevant applicable EU procurement rules.
Status
Signed - 8/03/2022