The loan will help build a strong green business infrastructure in Romania, prompting low-carbon economic growth
The loan is part of IFC’s $2 billion Real Sector Crisis Response Facility, one of four components of IFC’s broader $8 billion COVID-19 Fast-Track Financing Facility, which IFC has earmarked to support private client companies and their employees hurt by the economic downturn caused by the spread of COVID-19.
“(…) This green loan reconfirms our commitment to promoting sustainable practices, by undertaking to allocate the funds to green eligible projects located in Romania, as defined by our Green Finance Framework,” said Mirela Covasa, NEPI Rockcastle`s chief financial officer.
NEPI Rockcastle’s sustainability targets include a goal of becoming carbon neutral by 2030, and the proceeds of the loan will be used to finance projects that meet its Green Finance Framework eligibility criteria. These targets and criteria are in line with the ICMA Green Bond Principles 2018 and LMA Green Loan Principles 2020.
“Given the COVID-19 pandemic, IFC’s timely funding will provide NEPI Rockcastle with critical access to long-term liquidity, thus helping business flow through the crisis and weather continuous uncertainties in these challenging times,” said Ary Naïm, IFC’s regional manager for Central and Southeast Europe.
IFC’s committed investment portfolio in Romania, as of June 2021, stood at $1.03 billion in 29 projects. Diversified across key sectors of the economy, IFC’s investments focus on strengthening and diversifying the financial sector as well as healthcare, agribusiness, manufacturing, and retail sectors.
NEPI Rockcastle is the largest retail real estate company in the Central and Eastern Europe. The group owns and manages a portfolio of 54 retail properties (excluding joint venture) in Romania, Poland, Slovakia, Bulgaria, Hungary, Czech Republic, Croatia, Serbia, and Lithuania.