In Romania, access to housing finance is still limited and IFC’s financing will help develop the green housing loan market. The residential housing market lags in green certifications while green housing finance is still at an early stage of growth. With IFC’s support and global expertise, UCB will be able to develop internal capacity and ramp-up the share of green housing in its overall portfolio.
According to estimates, over 95% of the buildings constructed before 2010 require energy-efficient refurbishing. To support the country’s efforts to move towards a more sustainable future, the entire proceeds of IFC’s bond investment will be used for green housing products while also helping reduce greenhouse-gas emissions.
“We are very pleased to partner with IFC once again, through the investment made in our senior bonds` issuance,” said Rasvan Radu, CEO of UniCredit Bank. “This particular investment is meant to increase the access of our customers to more affordable green financing – particularly green mortgage, one of our retail flagship products. As a leading bank, with sustainability at the core of our DNA, constant growth of our green financing portfolio and support for customers’ transition to a greener, more sustainable future are among our main priorities.”
Development of the green mortgage segment is especially important in Romania as households accounted for about 33 percent of the total final energy consumption in 2018. Therefore, improving energy efficiency in the residential sector will make an important contribution to climate mitigation.
IFC will provide internal knowledge and capacity on the green buildings’ certification schemes, concept of green mortgages, as well as introducing IFC’s own Excellence in Design for Greater Efficiencies (EDGE) platform for the green buildings’ certification.
IFC has supported private sector development in Romania for over 30 years, with a committed exposure reaching $1,274 billion as of August 2022, boosting the country`s green transition, digital and physical connectivity, and integration into global value-chains.
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. It works in more than 100 countries, using its capital, expertise, and influence to create markets and opportunities in developing countries.