As the property sector in Romania recovers slowly from the COVID-19 pandemic, a new investment by IFC will help ensure continued access to quality and environmentally friendly commercial office spaces. IFC’s €85 million loan to Globalworth Holdings Cyprus Limited, a wholly-owned subsidiary of Globalworth Real Estate Limited (GREIL), aims to promote and expand green projects in Romania while creating jobs and supporting the country’s climate goals.
IFC’s long-term funding will help the company—the largest office investor in Romania in terms of market value and gross lettable area—strengthen its liquidity position and achieve its environmental goals—100% of its commercial portfolio to be green. The company has an investment property portfolio of modern and energy-efficient commercial property assets spread across Romania and Poland. About 90 percent of the company’s standing commercial portfolio is comprised of environmentally friendly offices. In the face of uncertain market conditions exacerbated by the global pandemic and the recent war in Ukraine, IFC’s investment will further allow GREIL to sustain operations, deliver investment projects, and launch new green projects in Romania.
The current loan is funded through IFC’s $2 billion Real Sector Crisis Response Facility, part of IFC’s broader $8 billion COVID-19 Fast-Track Financing Facility to support private companies and their employees hurt by the economic downturn caused by the global pandemic.
“We are delighted, through this Loan, to be extending our collaboration with IFC. It is our first green loan since we launched our inaugural green bond back in 2020 and we believe it firmly demonstrates the sustainability of the Globalworth business and the markets in which Globalworth operates,” stated Mihai Zaharia, Head of Investments Romania and Group Capital Markets Director, Globalworth.
IFC has helped GREIL develop a Green Loan Framework, which is in line with the Loan Market Association’s Green Loan Principles 2021. Under the Green Loan Framework, GREIL will use Green Loans to finance or refinance eligible projects which will mainly contribute to climate change mitigation.
“IFC strategy in Romania is focused on promoting a green, resilient and inclusive development,” said Ary Naïm, IFC’s Regional Manager for Central and Southeast Europe. “We are pleased to strengthen our partnership with Globalworth, leading developer of green buildings and signal confidence in Romania`s office sector at the exit of the COVID-19 crisis.”
This is IFC’s second financing to GREIL, following a €50 million investment in a public bond issued by the company in 2018.