Porto Franco entered into a 102 million euro loan contract with the EBRD and Luminor

Today, a loan contract was entered into between the European Bank for Reconstruction and Development (EBRD) and Luminor and Porto Franco: the loan from the EBRD amounts to 63 million and the loan from Luminor to 39 million euros. The Porto Franco project will be built in an environment-friendly manner and based on the standards of the Leed Gold Certificate: the project will be compliant with high environmental protection and energy consumption requirements and the construction methods and construction materials used will also meet very high standards.

According to the Minister of Foreign Trade and Information Technology, Kaimar Karu, Porto Franco is a strong, competitive, and innovative development project that provides significant added value to the local market. “Developments that help shape modern environments, which facilitate entrepreneurship and tourism are certainly worthy or acknowledgement and praise,” said Karu. “The volume of the investment from EBRD and Luminor is also significant. It will not only build the centre, but will also contribute to the competitiveness of the Estonian economy and support environment-friendly and sustainable development of the country.”

Vlaho Kojakovic, EBRD, Head of Property and Tourism: „Porto Franco is an exciting project aligned with our strategic focus on urban regeneration initiatives and sustainable real estate, two of the key pillars of EBRD’s Property and Tourism strategy. The Project will be market-leading development achieving LEED Gold certification. Connecting the historical centre of Tallinn with Old City Harbour, Porto Franco will play a pivotal role in the regeneration of the wider port district, which is fast becoming the main gateway to the city. In parallel with the investment Project we have also facilitated a sector-wide policy engagement with the City of Tallinn and private sector actors supported by EBRD’s City Regeneration and Environment (CREATE) Fund.“

Ian Brown, EBRD, Head of Baltics: „We are extremely pleased to provide financing for the Porto Franco project, which will provide high quality real estate in the centre of the city for the development of new businesses and the promotion of tourism. The Project is just one step in support of the strategic regeneration of this historic and innovative city, and is a good example of the EBRD’s focus on green economic development in Estonia.“

Head of the Baltic Corporate Banking of Luminor Bank Andrius Načajus said that Luminor, the leading independent bank in the Baltics, is excited to work with local companies and participate in major projects of such magnitude as Porto Franco. “We are honored to work with people who have a vision and who make our cities more attractive to live and work in. One of such people is certainly Rauno Teder, Chairman of the Board of Porto Franco OÜ. Porto Franco is another milestone that brings Tallinn closer to its vision of being a friendly and compact sea city.”

“Signing of the funding contract is an extremely significant milestone for any property development project. An extraordinary contract was concluded today: no property development loan in the Baltic states has ever exceeded the amount of 100 million euros before,” said Rauno Teder, Chairman of the Board of Porto Franco OÜ. “We are very happy to see our remarkably constructive negotiations with the banks confirmed with signatures today – it is difficult to imagine a more professional and better tandem of banks to cooperate with. I would like to extend my heartfelt thanks to the entire team of Porto Franco and to the teams of the banks who have all contributed greatly to the project.”

As of today, the EBRD has invested over 700 million euros into 90 different projects in Estonia; all Estonian projects have been 100% private sector capital-based. Porto Franco is the first EBRD-funded project in the region which uses the digital BIM modelling solution. This enables to design, build, and manage the entire process digitally.

The concept of the Porto Franco project involves using several state-of-the-art technologies which will ensure efficient use of energy and water and reduction of waste generation and pollution, including climate change-resistant technologies which will alleviate the climate risks endangering the region, especially the Baltic states.


  1. Porto Franco in February 2020, photos by Tiit Mõtus: https://1drv.ms/u/s!AiVpI9gUslz2n1bfRSPyXuDPNGN6?e=gMfRaA
  2. Porto Franco in 3D (source: Porto Franco): https://1drv.ms/u/s!AiVpI9gUslz2nzdmSPw8idEozOrD?e=6x9EPp

The Porto Franco concept was created by the Chapman Taylor practice of architects from London, the architects of the building complex are Ott Kadarik and Mihkel Tüür, the main designer is Estkonsult OÜ. The building was designed and will be constructed based on the LEED Gold standards. The vicinity of Porto Franco to the sea and to the Old Town will provide a creative and inspiring milieu. 

Porto Franco (www.portofranco.ee) is a unique property development which will open the heart of the city of Tallinn up to the sea and provide the only seaside area for entrepreneurship and leisure time in Tallinn. 190 million euros will be invested into the Porto Franco development and the surface area of the new multifunctional district will exceed 150,000 m2. The Porto Franco complex will consist of three underground levels for a parking building with 1,170 parking spaces and for rented commercial premises, and of five levels above the ground for a shopping centre, an office centre, and a hotel. Porto Franco is developed by Porto Franco OÜ. The shareholders of Porto Franco OÜ are successful companies which, in addition to their principal activities, invest in long-term projects which create added value for the Estonian economic environment. The company’s management board have many years of international experience in the development of office and commercial premises.

The EBRD is a multilateral bank that promotes the development of the private sector and entrepreneurial initiative in 38 economies across three continents. The Bank is owned by 69 countries as well as the EU and the EIB. EBRD investments are aimed at making the economies in its regions competitive, inclusive, well-governed, green, resilient and integrated. Follow us on the web, Facebook, LinkedIn, Instagram, Twitter and YouTube.

Luminor is the third-largest provider of financial services in the Baltics, with approximately 1 million clients, 2500 employees, and market share of 16.6% in deposits and 18.7% in lending as at the end of the fourth quarter of 2019. Total shareholders’ equity amounts to EUR 1.6 billion and Luminor is capitalised with a CET1 ratio of 19.7%.

Welcome speech by Ministrer of Foreign Trade and Information Technology Kaimar Karu
Rauno Teder, Chairman of the Board at Porto Franco speaking
Shareholder of Porto Franco and free thinker Heldur Meerits and minister Kaimar Karu
Ian Brown, Head of Baltics at European Bank for Reconstruction and Development speaking
Andrius Načajus, Head of Corporate Banking at Luminor Bank speaking
EBRD, Porto Franco and Luminor Bank representatives are signing loan agreement
Agreement has been signed
Joel Armei – Luminor Bank senior relationship manager and Oleg Fedulin – EBRD head of Property and Tourism department
Jüri Kuusk from Luminor Bank, Oleg Fedulin from EBRD and lawyer of Luminor Bank Liina Vissak are delighted with the work done
102 million euros between these covers