- IFC invests in UniCredit Bank`s bonds to bolster country’s climate finance market and support net-zero targets.
- Half of proceeds allocated to green loans for smaller businesses and half for green housing loans.
- Up to a quarter earmarked for green housing loans to women.
Bucharest, Romania, November 25, 2024—A new IFC investment in senior bonds issued by UniCredit Bank S.A., the Romanian subsidiary of UniCredit S.p.A., representing the first tranche of the total €108 million investment approved in relation to UniCredit Bank`s Euro Medium Term Notes Programme, will expand access to green loans for small and medium enterprises (SMEs) and individuals, including women, to bolster the country’s climate finance market and support its green transition.
Romania’s energy intensity remains over 60 percent higher than the EU average, even after a 30 percent reduction over the past decade. Although this presents a challenge, the country has committed to increasing its renewable energy consumption to 30.7 percent by 2030. Significant challenges remain in reducing greenhouse gas (GHG) emissions, particularly in the energy and housing sectors, which together account for a substantial portion of emissions.
IFC's investment is fully dedicated to climate finance, with half allocated to green loans for SMEs and the other half to green housing loans, including mortgages and renovation loans. At least half of the green housing loans are specifically earmarked for women. This funding is part of a broader program to strengthen Romania's emerging climate finance market, fostering competition and encouraging replication by other banks.
According to the 2023 World Bank Group Romania Country Climate and Development Report (CCDR), the country needs total investments of $356 billion to achieve net-zero emissions by 2050, with two-thirds expected to be financed by the private sector. In alignment with these projections, IFC has been actively supporting Romania's decarbonization targets and transition to a low-carbon economy.
Romania represents IFC's largest country exposure in Europe, with a portfolio of $2.1 billion, and its ninth largest globally.
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 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
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About UniCredit Bank
UniCredit is a pan-European Commercial Bank with a unique service offering in Italy, Germany, Central and Eastern Europe. Our purpose is to empower communities to progress, delivering the best-in-class for all stakeholders, unlocking the potential of our clients and our people across Europe. In Romania, UniCredit Bank is one of the main financial institutions, offering high quality services and products for all categories of customers. UniCredit Bank aims to permanently keep the customer at the center of its activities, to be a partner that is easy to work with and to be an active part of the communities in which it operates. Digitization and our commitment to ESG principles are key drivers for our work. They help us deliver excellence to our stakeholders and create a sustainable future for our customers, communities and people. The bank responds to a wide range of needs of its clients through a network of specialized partners: UniCredit Leasing Corporation, UniCredit Consumer Financing, UniCredit Services, UniCredit Insurance Broker
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