By Cyber Era NG Special Correspondent
A new IFC investment in UniCredit Bank S.A. senior bonds issuances, representing a part from the total of US$80 million approved amount in relation to UniCredit Bank’s Euro Medium Term Notes Programme, will help increase access to finance for green housing in Romania, including green mortgages and green home improvement loans, supporting the country’s climate goals.
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 percent 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 CEO of UniCredit Bank, Răsvan Radu. “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.”
Developing 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.
“We are pleased to keep strengthening our partnership with the UniCredit Group, with an operation that supports the increasing role of the local capital markets to finance the green transition in Romania,” said IFC’s Regional Manager for Central and Southeast Europe, Ary Naïm. “Energy and resource efficient houses are key to the environment, and they also mean lower costs of utility bills, and better quality of life for the people.”
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.
