- Investment will help the company green its operations
- It will boost supply chain resilience of the two countries
Warsaw, Poland; Sofia, Bulgaria, December 13, 2023 – In line with global goals for decarbonizing the construction, property, and logistics sectors, IFC is partnering with CTP N.V. – Europe's largest listed industrial and logistics property developer-owner – to decarbonize its operations in Bulgaria and Poland.
IFC has arranged €441 million senior unsecured financing package via a sustainable financing instrument, marking a first of its kind for CTP. This investment combines green use of proceeds and sustainability-linked features. It will help the company expand its energy-efficient and green-certified portfolio of industrial and logistics business parks in Bulgaria and Poland, two of CTP's expansion markets. The aim is to boost supply chain resilience of the target countries, while responding to the growing demand for manufacturing, warehousing and logistics facilities in the region, driven by nearshoring and e-commerce.
The investment consists of a €225 million senior loan from IFC's own account, a syndicated senior loan of €135 million under IFC's B Loan program, as well as €46 million senior loan from IFC acting in its capacity as the implementing entity for the Managed Co-Lending Portfolio Program. Additionally, Industrial and Commercial Bank of China has provided a parallel loan of €35 million. This operation supports IFC's objective to mobilize private capital in support of climate-related investments in the region, marking its largest syndication ever for a commercial property company globally.
"The IFC-arranged unsecured loan package allows us to realize our ambitious investment plans. We have a long-standing relationship with IFC, and their backing, as well as that of the commercial banks, is testament to our robust business strategy, balance sheet and track record of delivering industry-leading development returns in the CEE industrial and logistics market," said Richard Wilkinson, CTP Group`s Chief Financial Officer. "CTP has long been a pioneer in the development of sustainable industrial and logistics space, and with CTP's unique park model we also foster the local business ecosystems in the communities where we operate, stimulating the broader economic development of the region."
The buildings sector across the European Union is responsible for around 40 percent of energy consumption and 36 percent of CO2 emissions, making it the largest energy consumer in Europe.
Against this backdrop, IFC's Green Europe Project—a platform launched in February 2022 to provide tailored solutions for companies to decarbonize their assets and operations—will support CTP identify, manage, and disclose building resilience risks using IFC's Building Resilience Index. IFC will also help strengthen CTP's green agenda by supporting its decarbonization goals, among others, positioning the company as a standard setter for low-carbon business models.
"Accelerating the region's green transition is one of IFC's strategic priorities. This especially includes decarbonizing the property sector through key investments that promote low-carbon construction and energy-efficient upgrades, and by retrofitting the existing building stocks," said Ary Naïm, IFC Manager for Central and South Europe. "With this investment, we reaffirm the private sector's vital role to address climate mitigation and energy transition, promoting regional resilience."
IFC plays an active role in the decarbonization of the buildings sector in Europe by increasing access to sustainable finance instruments, including green or sustainability-linked loans or bonds, and by supporting clients in the property sectors to decarbonize their real estate portfolio through IFC's green building tool and certification, Excellence in Design for Greater Efficiencies (EDGE) and its Greening Real Estate Investment Portfolio (GRIP) platform.
About IFC
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 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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About CTP N.V.
CTP is the largest listed owner, developer and manager of logistics and industrial real estate in terms of gross leasable area, with 11.2 million sq m. GLA in 10 countries (as of 30 September 2023). The company certifies all new buildings under BREEAM at 'very good' or above and has achieved a negligible-risk ESG rating from Sustainalytics, reaffirming its commitment to sustainability. For more information, please visit: www.ctp.eu.
