Renewables

IFC buys Kommunalkredit Austria’s bond to finance sustainable energy in Europe

IFC Kommunalkredit Austria bond sustainable energy Europe

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Published

March 4, 2025

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Published:

March 4, 2025

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International Finance Corp. (IFC) is investing up to EUR 100 million in a senior unsecured bond issued by Kommunalkredit Austria to support financing of sustainable energy projects in Bulgaria, Poland and Romania. The Asian Infrastructure Investment Bank (AIIB) would match the sum, bringing the package to as much as EUR 200 million, primarily for wind power investments.

IFC is expanding decarbonization and sustainability activities in Europe and especially in the continent’s southeast. The international financial institution said it is investing up to EUR 100 million in a senior unsecured bond issued by Kommunalkredit Austria. The lender earmarked the proceeds for sustainable infrastructure projects in Bulgaria, Poland and Romania.

Notably, the news follows IFC’s recent launch event for the Western Balkans Green Growth Alliance.

The investment in Bulgaria, Poland and Romania will support efforts to combat climate change by improving access to energy and reducing the carbon footprint, the announcement reads. It is the first investment of IFC, a member of the World Bank Group, in a financial institution in Europe that specializes in infrastructure.

The project is expected to directly finance 10 projects in the three countries, primarily onshore wind

IFC’s investment is matched by the Asian Infrastructure Investment Bank, enabling the bond to achieve its target issuance size of EUR 200 million. The project is expected to directly finance 10 projects in the three countries, primarily onshore wind, with a total transaction amount of EUR 600 million, the update reveals.

One of the goals is to bolster the power sector’s resilience through the diversification of the energy mix.

“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,” said Kommunalkredit Austria’s Acting Chief Executive Officer Sebastian Firlinger. He expressed confidence it would be a long-term partnership.

Three target countries are lagging behind EU’s renewables targets

In Bulgaria, Poland and Romania, renewable sources make up from 14% to 19% of the total energy mix, well below the European Union’s targets, IFC stressed. “By supporting financial intermediaries like Kommunalkredit, we can harness their expertise to drive the low-carbon transition in key regions, diversify energy sources, and spur sustainable and inclusive economic growth,” said Vittorio Di Bello, its regional director for the financial institutions’ group in Europe and Latin America and the Caribbean.

IFC’s long-term strategy in Bulgaria, Poland, and Romania is to support accelerating the sustainable transition by fostering innovation and improving access to climate finance.

Kommunalkredit Austria is acilitating sustainability investments

Kommunalkredit Austria is specialized in European infrastructure and energy. The bank provides customized financial solutions and advisory services aimed at financial investors, entrepreneurs, independent power producers, concession corporations and utility companies.

It facilitates the development of infrastructure projects that meet the growing demand for sustainable investment opportunities.

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