Bucharest, Romania, September 29, 2023—IFC invested a record $546 million in Romania (including $436 million in long-term finance and $107 million mobilized from other investors) in fiscal year 2023—between July 2022 and June 2023—with a focus on strengthening the financial sector, supporting smaller businesses, and building a greener, more resilient economy.
IFC ramped up its support to the country's private sector through strategic investments in key areas, including flagship investments to strengthen capital markets and boost climate financing. That included €100 million in Banca Comercială Română S.A's MREL green bonds issuance – the largest benchmark-size euro bond issued by a Romanian financial institution in the global market – with proceeds earmarked for renewable energy, green mortgages, and green building projects.
To boost financial inclusion, IFC committed $76 million equivalent in Romania's first sustainability bond, issued by Romania's Raiffeisen Bank S.A., to help the bank increase its lending for climate-smart initiatives while supporting health care, education, and basic infrastructure. In addition, IFC provided €20 million to Patria Bank to help channel funding to smaller businesses, including those owned by women.
IFC also provided a €40 million loan to Garanti BBVA Romania to increase access to finance for green housing, including green mortgages and green home improvement loans; and invested a further $48 million in UniCredit Bank S.A. senior bonds issuances to strengthen the green housing loan market.
"Romania is in a good place to accelerate its convergence towards European living standards, while reducing remaining geographic and social disparities." said Ary Naïm, IFC Manager for Central and South Europe. "At a time of volatility in capital markets, IFC's focus has been on building the financial sector's resilience, while leveraging trusted partner financial institutions to increase financial inclusion and achieve climate goals. Going forward, we aim to continue boosting private sector growth and competitiveness to create a strong and sustainable economy."
As well as continuing to support capital markets development and financial inclusion, IFC will work on fostering and creating space for more private investments in key infrastructure – including through public- private partnerships – to boost renewable energy integration, connectivity, and access to services nationally and in key cities.
IFC has supported private sector development in Romania for over 30 years. Over the last five years, it has accelerated its program with investments totaling $1.92 billion, aimed at supporting the country`s green transition, digital and physical connectivity, and integration into global value chains.
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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