Recovery & Resilience Fund

The amount of financing of the investment project from the RRF is calculated according to the budget of eligible investment costs in the five pillars, as well as the coverage of specific criteria per pillar.T
The National Recovery and Resilience Plan with total investment funds of €31,2 billion includes a set of reforms and investments consisting of two parts: investment loans and grants. In particular, the RRF consists of:

Four (4) pillars regarding grants

Grants	18,4 billion €
Green transition	6,2 billion €
Digital transformation	2,2 billion €
Employment, skills and social cohesion	5,2 billion €
Private investment and transformation	4,9 billion €

Five (5) loan directions

Loans	12,7 billion €
Green transition	4,9 billion €
Digital transformation	2,6 billion €
Extroversion	3,2 billion €
Business scale up	0,7 billion €
Innovation (R&D)	1,3 billion €

The Recovery and Resilience Plan contributes to Greece’s green transition and aligns with the priorities of the European Green Deal, the 2030 climate targets and the goal for climate neutrality by 2050 “fit for 55%”, by allocating in total 37,5% of the estimated cost to climate actions.

The NRRP contributes to Greece’s digital transformation by devoting in total 23.26% of the estimated cost to digital objectives and it reflects the specific goals and structured action plan of the national digital transformation plan.

The loans of the Recovery and Resilience Fund will finance investment projects which will be co-financed with a bank loan of up to 50%. Investor should note that a minimum 20% equity participation of the investment plan is required.

Funding structure

30% - 50%	Commercial loan
30% - 50%	RRF loan
20%	Equity (up to 10% contr. in kind)

• The RRF framework poses no limitation regarding loan mechanics and characteristics. Loans can be structured as regular, bond or, in specific cases, syndicated loans.
• RRF and commercial loans have identical terms, in every aspect, excluding pricing.
• RRF Loan pricing 0,35%*, potentially limited by EU state aid rules.
• Loan tenure 3 to 12 years.

* RRF Loan Pricing is yet to be formally announced by the governing body.

Indicative expenses in the five basic pillars

Green transition

• Building and infrastructure energy efficiency improvement
• Recycling and waste management
• E-mobility (vehicles & infrastructure)
• Investment in renewable energy production systems from renewable sources (solar, wind, etc.)
• Net-metering investments (renewable energy for self-consumption)
  

Digital transformation

• Business digitization investments
• Hardware and software expenses
• Software as a Service
• Consulting expenses
• Employee training
  

Extroversion

• Business infrastructure
• Construction of new infrastructure
• Modernization of existing infrastructure
• Upgrading storage infrastructure
• Strengthening of services offered
• Including Hospitality and Tourism sector
  

Business scale up

• Investment needs following M&As
• Expenses relating to business model migration of merged entities
• Employee training and culture harmonization related expenses
  

Innovation (R&D)

• Promotion of Research & Development
• Installation of new and innovative systems and techniques
• Business reorganization
• New product and services related R&D expenses

Eligible expenses and prohibited sectors

Indicative eligible expenses

Assets (tangible - intangible)

• Land acquisition (up to 30% of BP’s eligible expenses)
• Buildings (purchase / construction / modernization)
• Equipment (purchase / construction / modernization)
• Transportation means
• Intangibles (purchase / usage)
  

Operating expenses

• Travel
• Third party services
• Consumables
• Other operating costs: communication, energy, maintenance, rent, insurance, etc.

Cost of Capital: construction period interest

Working capital*: expenses relating to raw material or merchandise, VAT

Marketing & Promotion*

* Working Capital and Marketing expenses up to 30% of BP’s eligible expenses.

Indicative excluded activities

• Arms & ammunition: research & development, production, trade.
• Tobacco: cultivation, manufacturing, distribution and trade.
• Gambling: including software used for gambling and relevant internet activities.
• Real Estate: projects that are not part of BP compatible with RRF targets – real estate intended for sale.

Business plan preparation

1. Submit the investment plan

Gather the required documents and supporting materials of the investment plan.

2. Evaluation

The eligibility of the investment plan is evaluated by Piraeus Bank, where its examined:

• Investment plan completeness.
• Business borrowing eligibility from the RFF.
• The eligibility of the investment plan according to the excluded activities and the eligible expenses.
• Eligible investments have a positive net present value.

The final decision for financing is made, based on the internal Bank credit policies.

3. Evaluation report submission

The bank submits to the independent auditor both the loan application file of the company and the summary report that includes the conclusion of its pre-evaluation.

The independent auditor then conducts a thorough eligibility audit of the investment plan and submits its evaluation report back to the bank.

4. Final approval

The bank confirms or revises its initial approval, according to the report of the independent auditor and:

• either proceeds with the implementation of its initial pre - approval or
• requests from the investor additional supporting documents and/or clarifications and for any modifications of the investment plan, in order to repeat the evaluation process again
  

5. Implementation

Final Approval by the bank and financing of the investment plan.