7th International Scientific Conference on Energy and Climate Change FUNDING PROJECTS IN GREECE NATIONAL BANK OF GREECE S.A. Konstantinos Venetsanos Project Finance Division Athens, 10 October 2014

The risk profile of projects has changed due to: Decrease in project revenues due to the economic crisis, Unable to form reliable forecasts, Debt crisis has serious impact on government obligations (expropriations, VAT refunds, payments of compensation, etc.).

New terms of funding Banks’ requirements have become more conservative, Increased investor participation (from 20% to 40% -50% of project budget), Shorter loan tenors (Mini Perm), Cash Sweep mechanisms, Increased guarantees and securities (government and / or corporate), Increased margins as a result of the increase of funding costs for the Banks.

Critical factors for the banking sector Upgrade creditworthiness Greek banks, Positive GDP growth rates, Reduced growth rate of non-performing loans.

Infrastructure projects in Greece Significant to the economic activity are Infrastructure Projects New technology Thermal Power Plants reducing CO2 emission New motorways that reduce travel time and distance Successful projects’ restart in December 2013, Accelerated payment procedures (expropriation, VAT refunds, payments of compensation, etc..), Multiplier effects on the economy, particularly at regional level, Increase confidence of foreign investors and banks to participate in new projects.

Waste management projects Financial needs for all of them ≈ € 60 mio NBG is involved in the financing of almost all waste managed projects in Greece, Western Macedonia tpa 120,000 Total cost € 45 mio Serres 60,000 » € 33 mio Ilia 63,000 € 37 mio Financial needs for all of them ≈ € 60 mio

Financing renewable energy projects NBG Group data as at 31/12/2013 (amounts in millions. €) Power (MW) Cost of investment Approved lending Photovoltaic Parks 100 258 200 Windfarms 931 1.228 698 Small Hydro Plants 31 52 37 Biogas 23 35 18 Total 1.085 1.573 953

Public Private Partnership (PPP) Projects NBG is actively financing : Mainly in the field of waste management - schools - telematics During the second quarter of 2014, contracts were signed for two PPP schools (22 schools in total) in Attica (participation and program JESSICA), Telematics Project (signed 30/6/2014). Increased participation of EIB after successful recapitalization of Greek Banks These projects contribute to environmental sustainability

PPPs challenges CHALLENGES ACTIONS Encouraging competition between the private entities, participation of EIB, Increase in Equity requirements, Club Deals (syndicated loans), Escape clauses, Renegotiation clauses. Increase in cost of risk for private investors, Increase in financial cost of the project due to pricing of credit risk by banks, Available funds need to be directed towards creditworthy projects, Requirements for binding banking letters of support. The relatively small size of the Greek PPPs is an advantage in the current situation

European programme JESSICA Joint European Support relating to Sustainable Investment in Urban Areas, Initiative of the European Commission (DG Regional Policy) in cooperation with the EIB in order to promote sustainable investment in urban areas, The financing of urban development is through the "conversion of subsidies" to a funding mechanism “refundable grants”, The initiative provides for the establishment of Urban Development Funds (UDF), which will be responsible for implementing the program through the JESSICA Holding Fund, To Holding Fund is a fund of funds, managed by the EIB, which is established for the investment of resources in Urban Development Funds,

European programme JESSICA Enhanced mobility of capital for urban development and PPP focusing on sustainability and environmental friendly solutions, Incorporating the experience of international financial institutions such as the EIB, NBG participates in the programme acting as Manager of Urban Development (UDF) for the regions of Attica, Western Greece, Ionian Islands, as well as projects of the Operational Programme "Environment and Sustainable Development" (EPPERAA),

JESSICA ‘S STRUCTURE IMPLEMENTATION JESSICA Holding Fund (HOLDING FUND) MANAGEMENT (EIB ) URBAN DEVELOPMENT FUND (UDF) URBAN DEVELOPMENT PROJECTS COMPETITION, SELECTION AND INVESTING IN UDF LOANS, EQUITY FUNDS FOR PROJECTS REPAYMENT OF RESOURCES TO IMPLEMENT PROJECTS UDF OPERATIONAL CONTRACTS (OPERATIONAL AGREEMENT) INVESTMENT AGREEMENT (INVESTMENT AGREEMENT)

European programme JESSICA Indicative areas of interest :   Urban infrastructure (parking facilities and green areas), Urban rejuvenation (refurbishment of buildings), Public Networks (transport, water, sanitation, energy), Health / education (hospitals, rehabilitation centers, etc.).

An example of project within the scope of Jessica: Municipality of Alexandroupolis’ Energy Saving Project Regarding the contribution of Jessica for the implementation of energy saving project, Municipality of Alexandroupolis is willing to realise the following project in the context of Jessica initiative. Project budget of € 2,33 million Installing photovoltaic cells in 16 schools for producing electricity from RES, Replacing 2,028 lighting street lighting system throughout the city of Alexandroupolis type LED luminaires, 7 Supply of electric vehicles for use by the municipal services, Phase 1 for eligibility has been completed.

NATIONAL BANK OF GREECE SA Project Finance Division Thank you ! NATIONAL BANK OF GREECE SA Project Finance Division 128-132 Athinon Avenue, GR104 42 Tel. : +30210 51 81 384 Fax : +30210 51 81 400 Email: kvenetsan@nbg.gr