· Up to €100 million invested in a senior unsecured bond to help finance infrastructure projects in Bulgaria, Poland, and Romania.
· Funds will boost energy security and access to energy in these countries.
· First investment by IFC in a specialized financial infrastructure institution in Europe.
Vienna, Austria, March 3, 2025—IFC is investing up to €100 million in a senior unsecured bond issued by Kommunalkredit Austria AG (Kommunalkredit)—IFC’s first investment in a specialized infrastructure financial institution in Europe—to boost financing for sustainable infrastructure projects in Bulgaria, Poland, and Romania.
IFC's investment is matched by an equal investment from the Asian Infrastructure Investment Bank, enabling the bond to achieve its target issuance size of €200 million. The investment will bolster the power sector’s resilience in the three countries by helping to diversify 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 Sebastian Firlinger, Acting CEO of Kommunalkredit. “This transaction marks the beginning of what we anticipate will be an impactful long-term partnership between our three organizations.”
In Bulgaria, Poland, and Romania, renewable energy currently accounts for just 14-19 percent of their total energy mix, which is well below EU targets.
"Our investment in Kommunalkredit’s bond will channel critical funding into sustainable energy projects in Bulgaria, Poland, and Romania," said Vittorio Di Bello, IFC Regional Director for the Financial Institutions Group in Europe, and Latin America and the Caribbean. "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."
IFC's long-term strategy in Bulgaria, Poland, and Romania aims to help accelerate the transition to low-carbon, resilient and inclusive growth. IFC has been actively involved in these countries, focusing on advancing economic progress, improving infrastructure, and promoting access to energy.
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 Kommunalkredit
Kommunalkredit Austria is a leading specialist bank in the European infrastructure and energy space. The bank provides tailored financing solutions and advisory services to financial investors, developers, independent power producers, and corporates in the concession and utility sectors. By partnering with clients, Kommunalkredit creates sustainable value and facilitates the development of infrastructure projects that meet the growing demand for sustainable investment opportunities. Focus areas include Energy & Environment, Communications & Digitalization, Transportation, Social Infrastructure, and Natural Resources. For more information, visit www.kommunalkredit.at.
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