EBRD invests €20 million in Akropolis Group’s debut Eurobond issue

By Axel  Reiserer

Share this page:
Factory at night

  • EBRD subscribes to €20 million of Akropolis Group’s debut international Eurobond
  • First issuance of its kind by the Baltic real-estate sector
  • Akropolis seeks to achieve BREEAM certification and support workforce inclusion

The European Bank for Reconstruction and Development (EBRD) has subscribed to a €20 million ticket as part of a €300 million Eurobond issue by Akropolis Group, the first such issuance by a real-estate company in the Baltic states.

Akropolis is the leading owner, developer and operator of retail and entertainment centres in the region. The EBRD funds will support the group’s expansion and refinance its existing debt. The bonds have been listed on the Euronext Dublin and NASDAQ Vilnius stock exchanges, contributing significantly to capital-market development in Lithuania.

The EBRD will also support Akropolis in developing and introducing a new training academy focused on the inclusion of older workers and people with disabilities. The academy will offer Akropolis’ more than 900 tenants and their employees equal, diverse and inclusive access to skills and employment.

Akropolis has also committed to achieving BREEAM certification for its operating assets and to implementing a sustainability and climate change strategy. Thus, the group will contribute to improving the sustainability performance of the built environment in the Baltic states.

Vlaho Kojakovic, EBRD Director, Property and Tourism, said: “Promoting the diversification of funding sources for real-estate development and ownership through the capital markets is one of the key pillars of the EBRD’s Property & Tourism Sector Strategy 2020-24. Supporting this goal is especially important in the context of the Covid-19 environment, as the pandemic has disrupted retail property markets worldwide. Thus, supporting a leading owner and operator of retail and entertainment centres in the Baltic states with its first Eurobond issuance is essential to supporting the sector’s resilience and facilitating further capital-market development.”

Manfredas Dargužis, Chief Executive Officer of Akropolis, added: “The successful debut Eurobond issuance is a historic step for Akropolis Group; we have become the first issuer in the Baltic real-estate sector to successfully raise funds in the form of international Eurobonds. We appreciate the trust of the ERBD in acquiring Akropolis Group Eurobonds. The EBRD's participation in this issuance is important to us and provides comfort for other investors as we aim to build long-term relationships by creating value and being a trusted partner to our investors and clients.”

The EBRD has been investing in the Baltic states of Estonia, Latvia and Lithuania since the countries regained their independence in 1991, supporting private-sector development, capital-market development and the green economy transition. Cumulatively, to date, the Bank has invested more than €2.5 billion in the three countries.

Akropolis Group has a strong track record of developing and managing retail-led mixed-use projects in the Baltic states. Its portfolio includes four income-producing shopping centres across Lithuania and Latvia. The group provides retailers with access to around 2 million consumers in four cities, attracting more than 41 million visitors per year.

Share this page: