Watson Farley & Williams (“WFW”) advised the European Bank for Reconstruction and Development (“EBRD”) on a €10.5m convertible bond loan to Noval Property REIC for the development, acquisition, and refurbishment of environmentally certified buildings, in order to achieve at least LEED “Gold” or BREEAM “Very Good” green certification. The loan will be mandatorily converted into newly issued shares of Noval Property, subject to predetermined conditions.
This is a landmark transaction for EBRD in Greece as, through the pre-IPO financing structure, it has committed to taking shares in Noval Property ahead of a public offering, sending a strong signal to the markets on Noval’s investment plans and prospects. This highlights EBRD’s strong commitment to support the decarbonisation of Greece’s property sector, as well as a notable application of the mandatory loan conversion structure.
The EBRD is an international financial institution founded in 1991. It operates in 36 economies across three continents and is committed to furthering progress towards market-oriented economies and the promotion of private and entrepreneurial initiatives.
A subsidiary of Viohalco, Noval Property is the second largest real estate investment company in Greece, active in the real estate development and investment sectors.
The WFW Athens Project and Structured Finance team that advised EBRD was led by Partner Virginia Murray and Counsel Stamatis Kotsiras, supported by Associates Asimina Papakosta and Fanis Krystallis.
Virginia commented: “We are delighted to have supported long-standing client EBRD on this strategic financing that supports sustainable buildings, which are currently in limited stock in the market. This deal highlights WFW’s focus on innovative financing structures in the Greek real estate sector, as well as our expertise in sustainable investments across all our key sectors”.
