A project summary document released by the European Bank for Reconstruction and Development (EBRD) targets a board decision on July 20 for the approval of a senior secured loan of up to EUR 50 million to Terna Energy SA. The package for a project with a total cost of EUR 60 million is considered to be provided alongside a parallel loan from a Greek commercial bank.
Terna would use the proceeds to finance the development, construction and operation of domestic power plants using renewable sources. The bank said the aim is to support Greece in achieving the target 40% of electricity consumption from renewables by 2020. It stated it will facilitate the country’s planned transition to a more market-based support mechanism for the development of green energy.
Terna, incorporated in Greece, is owned by GEK Terna Group, Terna Energy’s chairman George Peristeris, and a subsidiary of hedge fund York Capital from the United States. It directly owns and operates 110 MW of renewable energy projects and another 557 MW are indirectly owned by the company through special purpose vehicles located in Greece, Bulgaria, Poland and the U.S., the document said.
The project summary adds the project’s environmental category is B, where issues associated with the operation and construction of future renewable projects can be assessed and mitigated as part of an environmental and social due diligence (ESDD).