IFC Investment to Boost Access to Finance for Green Housing in Romania

​Bucharest, Romania, December 21, 2022 — A new IFC investment in UniCredit Bank S.A. senior bonds issuances, representing a part from the total of $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 Răsvan Radu, CEO of UniCredit Bank. "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 Ary Naïm, IFC's Regional Manager for Central and Southeast Europe. "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.

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 2022, IFC committed a record $32.8 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 UniCredit Bank S.A.

UniCredit Bank is part of UniCredit, a pan-European Commercial Bank with a unique service offering in Italy, Germany, Central and Eastern Europe. In Romania, UniCredit Bank is one of the main financial institutions, providing services and quality products for all client categories. The Bank aims to be customer centered, an easy to deal with partner and also very active in the communities in which operates. UniCredit Bank caters to a variety of client needs through a network of specialized partners: UniCredit Leasing Corporation, UniCredit Consumer Financing, UniCredit Services. For more information, visit www.unicredit.ro.