Financed ProjectsHellenic Telecommunications Organization

Identification Code:

OP/14/0032

Total Operation Cost:

400.000.000

Maturity:

36 months

Operation Status:

Description and Purpose of the Operation:

Provision of a EUR 50 million loan to the company Hellenic Telecommunications Organization S.A. ("OTE S.A.", or "OTE Group") for the purpose of financing Greek fixed and mobile network capex and other capex.

Countries of Operation:

Greece (100,00 %)

Financial Product:

Loans

Sector:

Telecommunication Services

Domain:

Private

Borrower/Client:

Hellenic Telecommunications Organization S.A.

Co-Financiers/Participants:

European Bank for Reconstruction and Development as well as other commercial banks and institutions.

Guarantors/Sponsors:

N/A

Developmental and Regional Cooperation Impact:

OTE Group operates in three member countries of the BSTDB: Hellenic Republic, Albania and Romania, thus revealing strong regional cooperation impact. The development impact stems from the ongoing improvement and developments of the telecommunication infrastructure of the Hellenic Republic (direct impact of the use of the BSTDB loan) and of the other markets of OTE operations (indirect impact).

Environmental Classification and Impact (summary):

Assigned E&S Category B. The E&S due diligence has been carried out at the corporate level, and concluded the following: -The E&S risks and impacts associated with the Group are limited, site specific, largely reversible and can be readily addressed through relevant mitigation measures; -The activities of OTE are generally in compliance with environmental, labor, health and safety laws and regulations in effect. The existing non-compliances are immaterial and are highly unlikely to result in reduction, suspension, or closure of some facilities and services; -The Borrower has developed and implemented comprehensive management systems with regard to environment, labor, health and safety, corporate responsibility, suppliers, HR, etc., meeting the good international practices and are certified accordingly, which allow the Group to address any E&S risks and impacts in a structured and continuous manner and respond adequately in cases of emergency; -The Borrower is an important employer with a workforce of 9000 employees offering comprehensive terms and conditions in line with good international practices. The Group developed corporate requirements with respect to risks of poor E&S performance of its supply chain for goods, materials and services, including high-risk products such as mobile devices, computers and transmitting equipment. The suppliers list is periodically screened and collaboration with suppliers registering poor E&S performance may be ceased; -OTE employs efficient pollution prevention and mitigation measures with regard to emissions, waste generation and hazardous wastes. The monitoring data suggest that these meet the legally allowed pollution limits; -The Group has developed and is implementing adequate site selection and acquisition criteria for base stations and transmission towers, which includes also consultations with stakeholders and interested parties on the telecommunication equipment and potential health impacts; -OTE has put in place a fully operational Information Security Management System in line with best practices for data safety and security; -The Group is actively engaged with the local communities by providing support through social contributions for vulnerable social groups and children, education, entrepreneurship, and sport events, promoting employee volunteering, and offering of special social products and services.

Operation Leader:

Energy & Infrastructure

E-mail:

ei@bstdb.org