The International Finance Corporation (IFC) has announced an investment of up to €100 million in a senior unsecured bond from Kommunalkredit Austria AG (Kommunalkredit). The Kommunalkredit bond investment is IFC’s first investment in a specialized infrastructure financial institution in the European region. The bond issuance, which also includes an equal investment from the Asian Infrastructure Investment Bank (AIIB), will help boost financing for sustainable infrastructure projects in Bulgaria, Poland, and Romania.
A Landmark Collaboration for Sustainable Infrastructure
The €200 million bond issue will support ten renewable energy projects in the three nations with a total investment of about €600 million. The funds will support projects diversifying the energy mix, making Bulgaria, Poland, and Romania’s power sector more resilient. The projects will also promote the low-carbon transition in these countries.
Sebastian Firlinger, Acting CEO of Kommunalkredit, said, “We are delighted to join forces with IFC and AIIB—two global organizations that share our vision for sustainable development—to advance the sustainable transition and boost private sector investment in emerging markets.”
He added, “This transaction marks the beginning of what we anticipate will be an impactful long-term partnership between our three organizations.”
Improving Energy Mix and Supporting Low-Carbon Growth
Renewable energy makes up only 14-19% of the energy mix in Bulgaria, Poland, and Romania, falling short of EU targets. IFC’s investment will direct essential funding into renewable energy projects, helping close the gap and support a sustainable energy future.
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Supporting Sustainable Growth and Energy Transition
Additionally, the investment supports IFC’s vision of promoting low-carbon, resilient, and inclusive growth in Bulgaria, Poland, and Romania. IFC has been operating actively in these nations to spur economic development, enhance infrastructure, and increase access to energy.
The investment in bonds will also assist the region in its renewable energy ambitions and facilitate the general sustainability goals of the EU. IFC is further catalyzing the transition towards low carbon and sustainable infrastructure development in the emerging markets through such partnerships.