Lamda Development Green Bond

Location:

Greece

Project number:

53850

Business sector:

Property and tourism

Notice type:

Private

Environmental category:

B

Approval date:

06 Jul 2022

Status:

Signed

PSD disclosed:

26 Jul 2022

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

The European Bank for Reconstruction and Development ("EBRD") invested EUR 20 million in a 7-year EUR 230 million green bond (the "Green Bond") issued by Lamda Development SA ("Lamda" or the "Company"). The Green Bond is listed on the Athens Stock Exchange and the Company's Green Bond Framework is aligned with the International Capital Market Association's ("ICMA") Green Bond Principles ("GBP"). The transaction marks the first green bond issued by the Company.

Project Objectives

The proceeds of the Green Bond will be allocated exclusively to green investments, as defined in the Company's Green Bond Framework, in the following categories: (i) investments in sustainable buildings and sustainable urban landscapes, (ii) investments in green energy and (iii) investments in smart technologies.

An amount equivalent to the EBRD investment will be used to finance the development of new green certified assets of at least LEED "Gold" or BREEAM "Very Good" level.

Transition Impact

ETI score: 60

The project has been presented under the Greek Corporate Bonds Framework III (BDS20-098) and thus its transition impact relates to contributing to the development and long-term financial viability of the Greek debt capital markets, under the "Resilient" quality, while improving transparency and disclosures, including on corporate climate governance with the Green Bond being in line with ICMA GBP, under the "Well governed" quality.

Client Information

LAMDA DEVELOPMENT SA

Lamda is a leading Greek real estate developer specialised in the development, investment and management of real estate assets. Lamda's existing investment portfolio comprises 3 retail centres with gross leasable area of 157k sqm as well as smaller investments in other real estate assets. The Company is also the owner of the Ellinikon project, the largest regeneration project in Greece, which aims to transform the former Athens International Airport into a sustainable and fully integrated commercial, residential and hospitality area available to the public.

EBRD Finance Summary

EUR 20,000,000.00

Total Project Cost

EUR 230,000,000.00

Additionality

The Bank's participation is additional as it contributes to (i) risk mitigation, as it sends a confirming signal towards the re-opening of the domestic debt capital markets, whose activity was halted in 2022 due to the global instability, (ii) an innovative instrument, as it supports an innovative green finance instrument integrating climate and environmental considerations of urban regeneration and (iii) standard setting, as it encourages Lamda to achieve higher level building certifications.

Environmental and Social Summary

Categorised B (ESP 2019). This is a capital market transaction with an existing equity client. A Strategic Environmental Impact Assessment (SEIA) was conducted for the masterplan and an Environmental Impact Assessment (EIA) meeting national laws was undertaken for the site preparation and infrastructure work. In 2019, Environmental and Social Due Diligence (ESDD) for that project was undertaken by an independent consultant and EBRD's ESD, and an Environmental and Social Action Plan (ESAP) was agreed with the client. The ESAP focused on conducting appropriate E&S assessment of sub-projects as well as developing and implementing appropriate policies, plans, systems and capacities in order to manage project EHSS aspects, and all provisions have been sufficiently implemented. The Company will continue to comply with EBRD's Performance Requirements, continue to implement the ESAP, and submit Annual Environmental and Social Reports to the Bank.

The project is considered Paris aligned, as it will meet the green building certification criteria for mitigation and will integrate climate resilience measures into project design to address identified climate adaptation vulnerabilities. The project is consistent with the GET approach and the GET share is 100%.

Technical Cooperation and Grant Financing

None.

Company Contact Information

Investor Relations
IR@lamdadev.com
+30 210 7450600
+30 210 7450645
https://www.lamdadev.com/en/
LAMDA Development S.A. 37A Kifissias Ave. (Golden Hall) 151 23 Maroussi, Greece

PSD last updated

26 Jul 2022

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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