REG - Eco Buildings Group - Eco Buildings Secures over €400m Chile Contract

Eco BuildingsAnnouncement

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RNS Number : 0822E  Eco Buildings Group PLC  21 October 2025

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21 October 2025

Eco Buildings Group PLC

("Eco", "Eco Buildings" or the "Company")

Eco Buildings Secures over €400m Chile Contract

Highlights

·    Landmark agreement to manufacture and supply 20,000 homes in Chile
under the Government's flagship social housing programme.

·    Approximately €420 million gross revenues over seven years, with
Government-backed payment structure.

·    First 607-house tranche funded with 50% deposit of €12.75 million.

·    Establishes Eco as a key provider in Chile's housebuilding programme.

Eco Buildings Group PLC ("Eco Buildings" or the "Company"), the UK-listed
modular housing innovator (AIM: ECOB), is pleased to announce that it has
signed a landmark agreement with the authorities in Chile to deliver 20,000
high-quality modular homes under the Chilean Government's flagship social
housing programme. The approximately €420 million contract spans seven years
and marks Eco's transition from certification to full-scale commercial rollout
in Latin America.

Background

In July 2023, Eco initiated the rigorous two-tier approval process in Chile,
one of the most stringent in Latin and Central America. Following successful
completion of all required testing and acoustic and insulation validations,
Eco has now achieved full certification, joining a select group of approved
building systems in the country.

As previously announced on 3 March 2025, Eco constructed demonstration homes
in Melipilla (Metropolitan Region) and Valparaíso, two strategically
important areas near Santiago. These show homes were visited by senior
Government officials, parliamentarians and municipal leaders, allowing them to
assess first-hand the quality, speed and aesthetics of Eco's technology.

Following these visits and town hall allocation meetings, the first tranche of
607 homes has already been designated to beneficiary families. It is expected
this initial tranche will be delivered during the course of 2026 and is fully
costed by a 50% deposit of €12.75 million, in line with Chile's government
payment framework. By the seventh year of the contract, the Company is
expected to be delivering up to 5,000 homes per year.

Under the terms of the agreement, Eco will supply 20,000 homes over seven
years, generating approximately €420 million in gross revenues. To deliver
this efficiently, Eco will deploy a new manufacturing line in Chile,
leveraging its fully automated GFRG (glass fibre reinforced gypsum) panel
technology. Factory installation is planned for Q2 2026.

The Chilean Government's long-term programme targets 250,000 homes nationwide.
With certification achieved and commercial rollout underway, Eco is well
positioned to become a long-term partner in addressing Chile's social housing
deficit. The Board anticipates replicating this model across Latin America.

Chile's social housing programmes are delivered through a structured framework
involving EGIS (Social Housing Management Organisations) and SERVIU (the
national housing authority). More than 370 EGIS entities coordinate technical
and social aspects, site selection, design, and contracting. This
decentralised model allows private companies like Eco to integrate rapidly
into national programmes while maintaining rigorous oversight and payment
security.

Structured Payment Framework

The contract is governed by Chile's Ministry of Housing administrative
procedures framework (Resolution 1439, DS No. 49 (2011)), which establishes
the mechanism by which Housing Association companies supervise and fund the
development of social housing programmes.

Under this framework, Eco, as the manufacturer of industrialised housing
components, is entitled to receive advance payments of up to 50% of the
contract value for each lot, with the balance payable upon delivery and
on-site verification by the national housing authority (Serviu).

Each of the multiple lots within the 20,000 home programme will be contracted
and funded individually, with 50% deposits lodged directly with Eco at the
commencement of each lot. This structure provides payment security,
predictable cash flows, and minimal working-capital exposure over the
seven-year programme.

 

Dr Etrur Albani, Executive Vice-Chairman of Eco Buildings, commented:

"Securing our first project in Latin America represents an important milestone
for Eco Buildings and demonstrates the scalability of our revolutionary
technology across new markets. Chile provides a strong regulatory framework
and a strategic entry point into the wider region.

Our focus is on delivering high-quality, sustainable and affordable housing
through an efficient, industrialised approach. We believe our technology can
support governments and developers in accelerating housing delivery across
Latin America in a cost-effective and environmentally responsible way."

 

Eco anticipates announcing further joint venture arrangements, in line with
those previously disclosed in regions such as Senegal and Sudan.

Eco's GFRG walling system has been analysed against ACI 318-08 standards,
demonstrating ductility, axial load capacity and shear performance suitable
for seismic regions. Reinforced panels achieve axial load capacities up to
four times higher than unfilled panels, with shear strengths exceeding 45 MPa
in representative calculations, confirming the system's structural integrity
and seismic resilience.

Notes

·    Eco's technology is based on large-format, glass fibre reinforced
gypsum (GFRG) panels, enabling faster, cheaper, greener construction compared
to conventional methods.

·    The certification obtained in Chile is recognised regionally,
providing a platform for expansion into neighboring countries with lower
regulatory barriers.

·    Eco already has contracts in Albania and Kosovo, generating €114
million in expected revenues over three years, and is advancing multiple
pipeline opportunities globally.

Further information is available on Eco Buildings website:
www.eco-buildings.net

For more information contact:

Eco Buildings Group plc

Dr Etrur Albani, Executive Vice Chairman

Fiona Hadfield, Finance Director

Tel: +44 (0) 207 380 0999

Spark Advisory Partners Limited (Nominated Adviser)

Matt Davis / James Keeshan

Tel: +44 (0) 203 368 3550

Tavira Securities Limited (Broker)

Oliver Stansfield / Jonathan Evans

Tel: +44 (0) 203 192 1739

CMC Capital Markets (Joint Broker)

Tel: +44 (0) 203 003 8632

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