Lamda Development : Announcement of significant developments

LAMDA Development S.A. (the Company), further to its announcement dated 25.11.2019, announces that on 27.01.2020 signed with Eurobank Ergasias SA and Piraeus Bank S.A. the agreement on the basic business terms for the syndicated bank loans to be provided to the Company and the/or the group's subsidiaries. The aforementioned loans that will be used for the financing of the Hellinikon Project (the Project) are of a total amount of up to €879 million plus an amount of up to €303 million of syndicated banks loans to be used for VAT Project costs.

In particular, the aforementioned bank loans will refer to:

(a) the financing of the works of the first five years of the Project (Phase Α), which will include mainly the enhancement of the seafront area, the development of the residential complexes, commercial uses and relevant infrastructure, of up to €546 million (plus an amount of up to €231 million for financing of VAT cost) with a duration up to 10 years; and

(b) the financing for the development of two shopping malls (Malls) on Vouligamenis Avenue and within the Agios Kosma marina of up to €237 million and €96 million respectively (plus amounts of up to €53 million and €19 million for financing of VAT cost) with a duration of up to 11 years.

Furthermore, two letters of guarantee of up to €495 million will be issued; one for up to €345 million will be in favor of Hellenic Republic Asset Development Fund to cover the credited consideration for the sale and purchase of the shares of HELLINIKON S.A., based on the terms of the Shares Sale and Purchase Agreement dated 14.11.2014 (the Agreement) and the second of €150 million will be issued to secure the due performance of the Company's obligations in the context of the aforementioned financing.

The interest rate will fluctuate and the margin based on the relevant terms will be determined on market terms. In the same context, it is also provided that the usual for such type of financing (project finance) will be provided, including, inter alia, mortgages and pledges on surface rights on parts of the estates of HELLINIKON S.A. to be developed, pledge on the shares of the issuer of the loan, pledge on part of the claims and proceeds sources from exploitation of the Project as well as claims from the Agreement.

Furthermore and with respect to the financing of the works of the first five years of the Project, the aforementioned terms provide for a mechanism pursuant to which the proceeds from sale of assets will be used, and part of such proceeds, will be, inter alia, used for financing the Project's budget.