Lamda raises $230m for green development in Athens

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Greek real estate developer boosts its flagship Ellinikon project with green bond backed by EBRD.

Lamda Development, the largest Greek real estate developer, has raised $230m through a green bond that will help finance the urban revival of the site of the former Athens International Airport.

Lamda owns the Ellinikon, the largest urban regeneration project in Greece and one of the largest in Europe. Once complete, it will have turned the former airport site into a sustainable and fully integrated commercial, residential and hospitality area open to the public. The new bond will finance key elements such as green buildings and infrastructure, green energy for the development and smart city technologies.

The green bond is listed on the Athens Stock Exchange (ΑΤΗΕΧ) and aligned with the International Capital Market Association’s Green Bond Principles. The issuance was supported with a $20m investment from the European Bank for Reconstruction and Development (EBRD) and its success signals that even amid recent global shocks, green financial assets remain strong.

Vlaho Kojakovic, EBRD head of property and tourism, said: “We are delighted to contribute to Lamda’s path towards a low-carbon trajectory and the realisation of an investment plan focused on sustainability and climate resilience, through a tailored capital markets tool. The Ellinikon is a flagship project for the sector’s transition to a high-specification, smart and sustainable building and infrastructure landscape, offering a versatile land-use mix and having significant economic, societal and environmental implications for a much wider area.”

Odisseas Athanasiou, CEO of Lamda Development, said: “This transaction further cements our relationship with the EBRD, which we consider a strong partner in our journey to make The Ellinikon a benchmark project for sustainability and smart living. The great reception of this bond by our investors is testament to the trust and confidence in our commitment to provide all of society, in a responsible way, with the highest standards of living in an urban environment.”

Lamda will invest the proceeds in financing green-certified assets, achieving at least Leadership in Energy and Environmental Design (LEED) ‘Gold’, or BREEAM “Very Good” certification.