Loan Facility - Spyridakos Group I.K.E

The Loan Facility is the largest measure in the Greek Recovery and Resilience Plan, and its objective is to facilitate private sector financing and supporting private investment. This is particularly important in Greece where corporate rates remain above the euro area average, and the Loan Facility can constitute a buffer against the negative impact of high market interest rates.

Projects that are being financed concern green transition, digitalization, increasing export capacity, economies of scale through mergers and acquisitions, and innovation (R&D).

The scheme includes three distribution channels:

• On-lending through the European Investment Bank, European Bank for Rural Development, and commercial banks;
• Equity support to mid-caps and SMEs;
• Additional funds for the InvestEU Member State compartment.

The Loan Facility provides for strict requirements and well-established safeguards, which concern investment participation (maximum 50% Recovery and Resilience Facility; minimum 30% co-financing loans; minimum 20% investors’ own contribution), financial viability (positive net present value projects), and compliance with the Do-No-Significant-Harm principle and State-aid rules. The Loan Facility also provides for commitments for financial institutions and InvestEU to invest at least 38.5% of the funds on green transition and 20.8% on digital transition.

Examples of projects financed as of December 2022 and currently under implementation include:

• Introducing fibre-to-the-home and developing the broadband network infrastructure;
• The construction of an industrial complex to produce medical products and for the research and development of new pharmaceutical products.

Examples of approved investments to benefit from the Loan Facility are the following:

4. Spyridakos Group I.K.E in Serifos (island in the south Aegean Sea). The investment consists of the energy upgrading of existing hotel and equipment. The overall investment is EUR 1.12 million, EUR 0.5 million of which financed by the Recovery and Resilience Facility.

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