Prague, the Czech Republic, July 30, 2021—IFC has participated in a green bond that will enable the construction of green-certified industrial and logistics buildings in Serbia and Romania. By investing, IFC is promoting an energy-efficient real estate sector, fostering greater market sustainability, and tackling climate change in the two countries.
IFC invested €42.5 million in a €500 million green bond issued by CTP N.V. (CTP), a sustainable European industrial and logistics property owner-developer. The green bond was issued under CTP's €4 billion Euro Medium Term Note program and listed on the Euronext stock exchange in Dublin to fund green assets that promote a low-carbon and climate-resilient growth model.
Developing commercial and business-enabling infrastructure that is energy-efficient is key to addressing climate change challenges. In response, CTP will use the proceeds from IFC's investment to develop sustainable, green-certified industrial and logistics properties in Romania and Serbia.
Apart from backing CTP's high environmental standards for commercial properties in Romania and Serbia, IFC will also help CTP improve corporate governance and optimize its sustainability policy including a commitment to become carbon neutral in operations over the full year 2021.
"CTP welcomes IFC as committed investor in our green bonds. Both Romania and Serbia are important markets to CTP. Our goal to grow CTP's leading market position, whilst being the most sustainable industrial and logistics property developer in these markets, is fully aligned with IFC's own development goals. It is an excellent win-win for both institutions," said Jan-Evert Post, Head of Funding & Investor Relations at CTP NV. "CTP will continue to be a frontrunner in Environment, Social and Governance (ESG) in the European logistics and light industrial property sector. We regard IFC's support as a solid vote of confidence in our endeavors to become a carbon neutral company, leading on ESG related matters."
Romania serves as a significant gateway for goods between Eastern Europe and the rest of the European Union. The country is an important logistics center for Bulgaria and Moldova due to short distances and low transport costs. Serbia, on the other hand, has significant potential for development as an industrial and logistics hub due to its geographical location, transportation networks, and competitive labor costs along with an educated, multilingual, and tech-literate workforce.
"Countries in Central and Southeast Europe are well placed to attract fresh private manufacturing investment, and global value chains increasingly require access to green industrial buildings and climate-smart logistics," said Ary Naïm, IFC's Regional Manager for Central and Southeast Europe. "With this operation we aim to signal our support for best-practices in sustainability, and to the green bond market as a key tool to finance a green recovery."
IFC's committed own account investment portfolio in Central and Southeast Europe, as of the end of June 2021, stood at US$ 2.474 billion. IFC's investments are spread out across key sectors of the countries` economies focusing on the strengthening and diversification of financial institutions, infrastructure, commercial property and retail sectors, and the development of private equity and venture capital funds.
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.
About CTP N.V.
CTP is among the top five industrial property developer and manager in Europe and the largest in the Central and Eastern European region, holding over 6.3 million m² of gross leasable area. The Group continues to gain more market share across all its countries of operations and is on track to have 10 million m² by 2023. With its entire portfolio BREEAM certified, CTP claims to be the most sustainable developer in the region and is on track to be verified carbon neutral over 2021. In 2020, CTP received investment grade ratings from S&P (BBB- with outlook stable) and Moody's (Baa3 outlook stable) and in March 2021, CTP had a successful IPO on Euronext Amsterdam, which stands as the largest real estate IPO in Europe since 2014. In May 2021, Sustainalytics Inc. ranked CTP as one of the best 1.5% companies globally in terms of ESG (Environment, Social and Governance) risk score. For more information, visit ctp.eu.