The European Bank for Reconstruction and Development (EBRD) has invested €42.5 million in a €500 million green Eurobond issue by real estate company CTP NV to support its portfolio expansion, thereby increasing the supply of green real-estate stock across the EBRD’s regions.
CTP is the largest full service industrial and logistics property owner-developer in central and eastern Europe, with a portfolio of 100 industrial parks in key hubs.
The proceeds from the Bank’s investment will be used to finance the development and acquisition of sustainable industrial parks in Hungary, Poland, Romania, Serbia and the Slovak Republic. Newly built assets will be certified as “Very Good” or better, and older buildings will be upgraded to “Very Good”, in line with BREEAM, the world’s leading sustainability assessment method for buildings, and will be managed in line with best practice environmental and energy management standards.
As part of the EBRD’s investment, CTP is committing to reduce the greenhouse gas emissions in its supply chain. It will also further enhance its climate governance and disclosure practices, which will directly influence its operations and development activities in these five countries, and address sustainability and climate change issues.
In addition, and with EBRD support, the company is expected to increase access to training and employment opportunities for young people through policy dialogue and private sector skills committees. The goal is to upgrade skills standards and policies in green industrial real estate management, logistics and engineering.
CTP will introduce a high quality, nationally accredited dual-learning and on-the-job training programme, implemented in partnership with local technical vocational schools. After a successful pilot in Romania, the scheme is to be replicated in other countries.
Vlaho Kojakovic, EBRD Director, Property and Tourism, said: “Boosting the development of green industrial real estate is a priority for the EBRD. We are very proud to be supporting the expansion plans of our long-standing partner CTP, helping it to narrow gaps in sectoral skills, youth employment opportunities as well as to reach ambitious climate-related targets. The investment addresses challenges related to supply chains and logistic infrastructure in the EBRD’s regions, by supporting CTP’s continuous development of the logistics sector.”
Jan-Evert Post, CTP’s Head of Funding and Investor Relations, commented: “We regard this cooperation with the EBRD as a win-win-win. First, the EBRD’s involvement in CTP’s bonds contributes to the EBRD’s economic and social development objectives for the region, while proceeds from our green bonds are used to support CTP’s development activities. And second, through this cooperation with the EBRD, CTP further enhances its local community activities, aimed at improving education in the regions in which we operate.”
The EBRD is a leading investor in the property sector in the 38 economies in which it currently invests. Through its involvement in this and related markets, the Bank aims to redress the fundamental undersupply of modern, high-quality, energy-efficient commercial, logistics and residential real estate. To date, the EBRD has invested over €3.5 billion in the property and tourism sectors across its regions.
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