Piraeus Bank, the largest bank in Greece, has agreed to back a €650 million ($716 million) infrastructure investment program developed by the Hellenic Ministry of Development and Investments and the European Investment Bank.
The Hellenic Ministry of Development and Investments and the European Investment Bank established the Infrastructure Fund of Funds with the aim of maximizing the impact of grants from European Structural and Investment Funds, along with national funds sourced from an EIB loan and proceeds returned from previous urban investment under the JESSICA initiative.
According to Piraeus, the program was designed to accelerate clean energy investments, improve energy efficiency and bring delayed projects to completion. It is expected to unlock investment in projects that will have a significant impact on socioeconomic development, such as industrial parks, education and cultural facilities, construction, expansion, and upgrade or refurbish hotels and tourism facilities.
Once fully operational, the new infrastructure scheme will provide financing of €450 million ($495 million), unlocking total investments of at least €650 million ($716 million) for sustainable projects across priority sectors.
The Athens-based bank will initially use €32 million ($35 million) from the new fund to support investment in projects across Greece. Projects will be able to apply for new financing under the initiative in the coming weeks.
The bank said it will identify and invest in new clean energy projects, including wind farms, photovoltaic installations, biomass and biogas plants, and hydroelectric power stations, according to the bank. It will also consider new investments to improve energy efficiency in public and private buildings.
Piraeus is the second-leading Greek bank to confirm its participation in the scheme. Additional support from partner banks is expected to be confirmed following identification of eligible projects.
