Innovation Loan Programme

HDB grants loans up to € 400,000 for companies that fit ESG criteria


Pantelis Tzortzakis at the ESG Athens Symposium 2022: “New financial instrument aiding Innovation that combines guaranteed loans up to € 400,000 and grant subsidies based on Innovation and ESG criteria”

The Executive Vice President of the Hellenic Development Bank – HDB Mr. Pantelis Tzortzakis announced during his speech that a new financial instrument “Innovation Loan” will be presented in a few weeks by the Hellenic Development Bank – HDB.

Hellenic Development Bank-HDB has designed a new financing product in order to foster innovation also promoting ESG awareness which will combine for the first time an 80% guaranteed bank loan facility coupled with a grant.

Companies that have an Innovative investment plan may use this facility to support & increase their competitiveness by applying for loans of €25,000 to €400,000 with a 10 years duration and a max 3 years grace period.

In addition to the 80% loan guarantee offered by HDB to the loan holders, a 20% capital rebate is offered automatically – as a grant- repaying part of the loan in the case that some preset Innovation and ESG criteria are met during the Business Plan implementation phase. Meeting the preset Innovation criteria will offer a 15% capital rebate and only then by meeting the respective ESG criteria the loan holder may gain an extra 5% capital rebate, repaying thus in total the loan residual capital by a total of 20% .

As a result example, if a company receives a loan of €400,000 the €80,000 euros can be classified as a grant and repay the loan, should the innovation and ESG criteria are met.

As explained by Mr. Pantelis Tzortzakis, Executive Vice President of the Hellenic Development Bank, speaking at the ESG Athens Symposium 2022, the launching and distribution of this financial product is at the final stage and a total €140million as an initial loan portfolio will be disbursed.

“This is the first time that we link the financing with criteria ESG, turning the loan into a grant if specific criteria are met,” said Mr. Tzortzakis