EBRD Invests €10.5 Million in Noval Property

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by KnowESG
KnowESG_EBRD Invests €10.5 Million in Noval Property
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Noval Property has sealed a significant deal with the European Bank for Reconstruction and Development (EBRD), securing a bond loan of €10.5 million.

This loan carries a unique feature—it is set to be automatically converted into freshly issued shares of the company as per predetermined conditions.

The purpose behind this financial arrangement is to channel the proceeds into Noval Property's green asset investment pipeline, a crucial initiative aimed at bolstering Greece's property sector's efforts in decarbonisation.

Noval Property stands as one of Greece's prominent real estate investment firms, operating as a subsidiary of Viohalco. Notably, in 2021, EBRD played a pivotal role in Noval Property's inaugural green bond offering by investing €12 million out of the total €120 million offering.

The official signing of this financing agreement transpired recently, with key figures in attendance, including Jean-Marc Peterschmitt, EBRD's Chief Operating Officer of Client Services and Managing Director of Industry, Commerce, and Agribusiness, alongside Panagiotis Kapetanakos, Chief Executive Officer, and Aikaterini Apergi, Chief Financial Officer of Noval Property.

This innovative pre-IPO financing arrangement underscores EBRD's commitment to becoming an early participant in Noval Property's capital structure, thus delivering a resounding vote of confidence in the company's investment strategy and overall value proposition.

As part of this collaborative project, Noval Property has pledged to invest EBRD's funds into developing, acquiring, and renovating environmentally certified buildings.

These buildings will be required to achieve at least a LEED "Gold" or BREEAM "Very Good" green certification, a move aimed at addressing the limited availability of sustainable properties in the market and inspiring industry peers to raise their environmental standards.

Noval Property is also set to implement GRESB reporting standards, which serve as a global benchmark for environmental, social, and governance (ESG) performance in real estate assets, further solidifying its commitment to sustainability principles and the protection of shareholders' interests.

Furthermore, Noval Property has taken a pioneering step by embracing the UN Women Empowerment principles, marking itself as the first real estate firm in Greece to do so. This important initiative sets a new standard for gender equality within the industry and underscores the company's commitment to social responsibility at a national level.

Jean-Marc Peterschmitt, EBRD Managing Director of Industry, Commerce, and Agribusiness, expressed his satisfaction with the partnership, highlighting the EBRD's support for Noval Property's environmentally conscious asset pipeline and its proactive involvement in the company's pre-IPO financing. He emphasised the positive trajectory of Greece's real estate market and the alignment of values between the two entities in driving sustainable development.

Panagiotis Kapetanakos, Noval Property's Chief Executive Officer, voiced pride in the extended collaboration with EBRD, emphasising the significance of this transaction in realising the company's strategic investment plan focused on sustainable and environmentally certified assets.

He reiterated the company's dedication to fostering positive change through its operations, benefitting people and local communities, and promoting a more sustainable way of life.

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Source: EBRD

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