How Lamda Development plans to use the €350M bond proceeds

The new issuance forms part of the Group’s broader financial strategy and is primarily aimed at refinancing existing debt while further strengthening the company’s financial flexibility.

According to the announcement, total proceeds raised, assuming full subscription, are expected to reach €350 million. After deducting issuance costs estimated at approximately €10 million, net proceeds are projected at around €340 million.

The majority of the net proceeds, amounting to €320 million, will be allocated to the full early repayment of the Group’s 2020 bond loan through the exercise of the early redemption option scheduled for July 2026. It is recalled that the July 2020 bond issue, which was oversubscribed by 1.93 times, carried a yield of 3.40%.

In addition, approximately €20 million will be used to cover financing needs of the company and other Group entities, including working capital requirements, interest payments, and other financial obligations.

The bond will have a seven-year maturity and will consist of up to 350,000 dematerialized bonds with a nominal value of €1,000 each. The minimum subscription threshold required for the completion of the issuance has been set at €330 million; otherwise, the offering will be cancelled.

The offering will be conducted through a public offer addressed to the entire investment community in Greece, including both retail and qualified investors, while the bonds will be listed for trading on the fixed-income securities market of Euronext Athens.

The offering price has been set at par, at €1,000 per bond, while the final coupon and yield will be determined through the book-building process, depending on market conditions and investor demand.

Under the allocation structure, at least 30% of the issue will be allocated to retail investors, while the remaining portion will be distributed between qualified and retail investors based on demand and prevailing market conditions.

The issuance is expected to become one of the largest corporate bond offerings of the year in the Greek market, at a time when listed companies are increasingly seeking alternative sources of financing and ways to restructure their borrowing costs.