A new financial instrument “Innovation Loan” will be presented in a few weeks by the Hellenic Development Bank-HDB, as announced during his speech at the ESG Athens Symposium 2022 by the executive vice president of Panteli Tzortzakis.
According to an announcement, the Hellenic Development Bank-HDB has designed a new financing product for “innovation and ESG” which will combine for the first time bank lending with a state subsidy.
Specifically, companies that have an investment plan that is linked to innovative actions / ESG criteria and will aim to increase their viability and competitiveness, will be able to receive loans of 25,000 to 400,000 euros, up to ten years with a grace period of up to 3 years. .
If during the implementation of the project it is found that the ESG criteria and the specifications of innovative action are met, 20% of the loan will be converted into a grant, with repayment of part of the loan. That is, if a company receives a loan of 400,000 euros, the 80,000 euros can be classified as a grant and repay the loan, provided that the criteria of innovation and ESG are met.
As Mr. Tzortzakis explained, the procedures for the sale of the product are in the final stretch. The initial loan portfolio of the new product is estimated at 140 million euros and the Hellenic Development Bank will provide a guarantee of 80% on each loan. As for the 20% of the grant, this will be 15% for the innovation part and 5% for the ESG part.
“This is the first time that we link the financing with the ESG, turning the loan into a grant if specific criteria are met,” said Mr. Tzortzakis, adding that “the first innovation loan is a financial tool that has a guaranteed loan with a capital grant.”
Source: Capital
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