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EBRD lends 88 mln euros for underwater cables in Greece

The European Bank for Reconstruction and Development (EBRD) will provide a 88 million-euro loan to Greek submarine cable manufacturer, Fulgor for connecting islands and offshore wind projects with mainland Greece, the EBRD announced on Thursday (27 April).

The project is the fourth sub-operation to take place under the EBRD’s Greek Recovery and Resilience Facility (RRF) Co-Financing Framework, implemented as part of the Greece 2.0 National Recovery and Resilience Plan under the EU’s NextGenerationEU programme.

The loan consists of 62.8 million euros of EBRD financing, combined with 25.2 million euros of RRF loans channelled via the Greek Ministry of Finance, the EBRD said.

The funds will be used to support an investment programme of up to 110 million euros to expand Fulgor’s annual cable production capacity and finance associated working capital outlays, as well as research and development (R&D) initiatives. Fulgor will cover the remaining 22 million euros (20 per cent) of the project’s cost.

“I am delighted to be signing this important transaction with Fulgor, part of our long-standing partner, Viohalco Group. Not only does this substantial investment specifically support Fulgor’s production capacity and R&D capabilities, it also assists in the country’s overall sustainable transition by working to develop the offshore wind industry. This transaction combines green, gender and digital solutions – three of the EBRD’s most important strategic priorities,” said Jürgen Rigterink, First Vice President of the EBRD.

The implementation of Fulgor’s 2023-25 investment plan will enable it to manufacture green infrastructure, which will “unlock opportunities” for the company to participate in large interconnection projects and capture the “envisaged growth” in offshore wind energy installations, the EBRD said.

As part of the EBRD’s support, the Fulgor’s direct owner, Hellenic Cables, has also agreed to undertake initiatives such as mentoring programmes, training courses and action plans to address gender gaps.

“The investment in Fulgor’s capacity will allow Hellenic Cables to smoothly execute a very strong order backlog while at the same time getting ready to meet the increase in demand for renewable infrastructure and the high expectations of all our stakeholders. The EBRD is proving, once again, a supportive partner in our vision to become a key enabler of the transition to green energy,” said Alexis Alexiou, CEO of Cenergy Holdings.

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