By Cyber Era NG Special Correspondent
A new investment of IFC in the issues of higher-ranking bonds launched by UniCredit Bank S.A. (UCB) representing a part of the total amount of US$80 million approved by the UniCredit Bank S.A. Programme of issuing medium-term bonds in EUR, will contribute to improving access to finance for green housing in Romania, including green mortgages and loans for the redevelopment of green houses, supporting Romania’s climate objectives.
In Romania, access to housing finance is still limited and IFC funding will help strengthen the green housing loan market. The housing market (residential premises) is not very advanced in terms of environmental certifications, and green financing of housing is still at an early stage of the development process. With ifc’s overall support and expertise, UCB will be able to develop in-house capacity, thereby increasing the share of green housing in its overall portfolio.
According to estimates, more than 95 per cent of buildings built before 2010 require energy-efficient renovation. To support Romania’s efforts to build a more sustainable future, all amounts from IFC’s investment in bond issuances will be used to finance green homes while contributing to the reduction of greenhouse gas emissions.
“We are very glad that we are again partners with IFC, through the investment made in our higher-ranking bond issue”, said CEO of UniCredit Bank, Răsvan Radu. “This investment is meant to increase our customers’ access to more affordable green finance – especially the green mortgage, which is one of our main retail products. Being in the top echelon of banks in Romania, with a DNA focused on sustainability, our main priorities are the constant growth of the green financing portfolio and supporting the customers’ transition to a greener and more sustainable future.”
The development of the green mortgage segment is particularly important in Romania, given that households accounted for approximately 33 per cent of the total final consumption of energy in 2018. Therefore, improving energy efficiency in the residential sector will play an important role in combating climate change.
“It is essential to expand the global mortgage financing fund available in Romania, including those loans that allow for the purchase of more environmentally friendly homes,” said IFC’s regional director for Central and South Eastern Europe, Ary Naïm. “We expect this programme to lay the foundations for an increase in the opportunities available in this area and to stimulate other banks to introduce or improve green mortgage products in Romania.”
IFC will provide those interested with internal knowledge and capabilities regarding green building certification systems, the concept of green mortgages and will present its own platform – EDGE (Excellence in Design for Greater Efficiencies) – dedicated to the certification of green buildings.
