EBRD invested EUR 20 million as part of a EUR 300 million Eurobond issuance by Akropolis Group, UAB ("Akropolis", the "issuer" or the "Group"). Akropolis is the leading owner, developer and operator of retail and entertainment centres in the Baltic states. The bond has a maturity of 5 years and is listed on the Euronext Dublin and NASDAQ Vilnius stock exchanges.
The proceeds from the Bank's investment will be used to refinance the issuer's existing debt and finance expansion.
ETI score: 68
The transition impact is expected to come from: (i) the "Resilient" quality as this is the first bond issuance by the company and one of the few Eurobond issuances in the past year in Lithuania by non-FI corporates, thus contributing to capital market development in the country; (ii) the "Inclusive" quality as the issuer will develop and introduce a new training academy at its shopping centres, that will offer equal, diverse and inclusive access to skills and employment for the Group's 900+ tenants and its employees. The academy will especially focus on the inclusion of the aging workforce where the country level inclusion gaps are largest.
AKROPOLIS GROUP UAB
Akropolis Group UAB, a limited liability company incorporated in Lithuania is the holding group of the leading retail and entertainment platform in the Baltic countries. In terms of gross leasable area, Akropolis is the largest retail landlord in Lithuania and the second-largest in Latvia. The Issuer is owned by Vilniaus Prekyba, UAB, a limited liability company incorporated in Lithuania.
EBRD Finance Summary
Total Project Cost
The EBRD's participation in this issuance will support Akropolis Group's first effort to tap into the international capital markets and is expected to provide comfort to other investors. The Bank is further additional in the project as it contributes to improving the Issuer's standards both in the area of economic inclusion and sustainability.
Environmental and Social Summary
Categorised B (2019 ESP) and Low risk. The project is a capital markets transaction and the Bank's due diligence was limited to publicly available information and in-house due diligence. Environmental & social due diligence (ESDD) was carried out based on a review of the project prospectus, completed ESDD Questionnaire (April, 2021) and follow-up questions to the client. The ESDD showed that, while the issuer's environmental & social risk management capacities are appropriate for the management of its commercial property portfolio, future construction activities will require an improvement in ES management systems and oversight. An ESAP has been developed by requiring the client to develop and implement a corporate Environmental and Social Management System. The Issuer is required to ensure that the project complies with EBRD PRs and ESAP as well as submit annual reports to the Bank. These requirements are incorporated into the Framework Agreement. The project is consistent with GET approach and GET share is 100%, as the Issuer has committed to certify all of its operational assets under the BREEAM certification scheme and adopt a formal sustainability and climate change strategy.
Technical Cooperation and Grant Financing
TC support for this operation was provided by the EBRD's Shareholder Special Fund under the Gender and Economic Inclusion TC Framework, with a significant contribution by Akropolis Group.
Company Contact Information
Ozo Street 25, LT-07150, Vilnius, Lithuania
PSD last updated
17 Jun 2021
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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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).
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