Greek: Vote of confidence in Lamda – The green bond is a great success

A vote of confidence from the investment community in the prospects of the largest urban regeneration project in Europe in Elliniko and Lamda Development, is the hugely successful completion of the public tender process for the issuance of Lamda Development’s first green bond.

In particular, Lamda Development, following the announcement to the Athens Stock Exchange, informed that the public offer for the issuance of the 230 million euro green bond with a duration of 7 years has been completed.

As noted, the total demand from the investment public reached a record level of 718.5 million euros, achieving a 3.12 times over-coverage of the issue, while it was notable, despite the particularly adverse market conditions, the large participation with over 14,000 applications from private investors, as well as the participation of the EBRD. As reported, due to the high demand that was experienced, the final coupon was set at the bottom of the range at 4.70%.

The participation of individuals with the above number of applications is a historical record for the data of this bond stock market and reflects the confidence of the investing public and individuals in Lamda Development in general. In the final distribution, 73% of the book will be distributed to individuals as recognition of the company towards them. The new bonds will be traded on the Athens Stock Exchange from Wednesday 7/13.

Athanasiou St.: The coverage as well as the participation of over 14,000 individuals is a record in this particularly difficult environment

The managing director of Lamda Development, Odysseas Athanasiou, said: “Once again I want to thank the investing public for the trust they have shown in Lamda Development. Both the 3 times oversubscription and the participation of over 14,000 individuals, is a record for the Greek data, in this particularly difficult environment, and creates an even greater sense of responsibility for us to meet the expectations of all those who believe in us”.

The regeneration of Hellinikon is in full progress

The financing of the Hellinikon project which is in full progress with the construction sites already operating and those that will operate being the largest in the country, as has been pointed out, was already fully secured even before the start of the works, and before its overcrowding green bond. As they have been preceded by the successful capital increase of 650 million euros, the issuance of a bond of 320 million euros as well as the loan agreements of 1 billion euros signed with Eurobank and Piraeus Bank.

Strategic regeneration partnerships to create the first smart green city

In the context of the urban regeneration of Ellinikos, Lamda has already proceeded to sign agreements with TEMES SA, of the Konstantakopoulos group, for the joint development of two modern, luxury hotels and the corresponding tourist-residential complexes on the coastal front of Ellinikos, during the first five-year period phase of the project’s implementation, with Brooklane for a mixed development tower as well as agreements with Piraeus Bank and Eurobank for the relocation of their headquarters to the new Business Center that is being created. It has also signed a strategic partnership with Fourlis SA. for the development of a unique Retail Park, within the shopping center. Last week it was also announced the conclusion of a memorandum of cooperation for the purpose of establishing a modern educational organization for primary and secondary education in Elliniko (CGS Ellinikon”), between Lamda Development, through its subsidiary Elliniko MAE, Prodea Investments and Costeas – Geitonas School ( CGS).As the managing director of Lamda Development Odysseas Athanasiou has pointed out at the beginning of the project, Lamda’s goal is for Hellinikon to be a project of national collaborations, alliances and attracting domestic and international funds and in this context the company will work with the best in each sector.

The investments it will finance

The capitals raised in accordance with the prospectus issued will finance investments for:

i) Sustainable buildings and sustainable urban exteriors. These relate to the development and construction of new buildings or the energy upgrade of the Group’s existing buildings (i.e. shopping centers and marinas and/or existing buildings within the Metropolitan Pole), which have or will obtain international sustainability certifications or will improve their energy performance efficiency, reducing the demand for primary energy and/or adapting them to conditions that are formed due to the phenomenon of climate change, as well as the development of sustainable urban outdoor spaces that will secure natural resources and contribute to the containment of climate change, according to criteria of the green bond framework. For the investments of this category, an amount of between 85 million euros and 110 million euros of the net raised funds of the KOD will be allocated, until the end of the year 2025.

(ii) Green energy. Investments in this specific category concern the licensing, acquisition (such as indicative purchase of a plot of land, acquisition of a company, etc.), construction, development and installation of production units and energy facilities from renewable sources and/or hydrogen production and energy storage units (facilities where stored energy from RES or hydrogen and is returned later), to cover the energy needs of the Hellinikon Project as well as the rest of the Group’s properties (shopping centers, marinas). For the investments of this category, an amount of between 65 million euros and 85 million euros of the net funds raised will be allocated until the end of the year 2025.

(iii) Smart city. The investments in this category concern the acquisition, construction, development and installation of intelligent systems in the Hellinikon project with the aim of reducing consumption and saving energy, reducing greenhouse gas emissions, preventing and controlling pollution and sustainable use and protection of water resources. The investments, which will be partially financed by the funds of the KOD, will indicatively include intelligent control and management systems for energy, water resources, pollution prevention and control, sustainable transport and/or systems that serve circular economy purposes.

For the investments of this category, an amount of between 45 million euros and 60 million euros of the KOD’s net raised funds will be allocated, until the end of the year 2025.

Source: AMPE