Globalworth announced that the Group has entered into a loan agreement for €85 million with the International Finance Corporation (“IFC”), which is a member of the World Bank Group. The loan is for 6 years between Globalworth Holdings Cyprus Limited (a subsidiary of the Company) and the IFC as the lender, with the Company acting as parent company guarantor.
The Board of Globalworth considers that the loan will further strengthen the company’s liquidity position and provide the group with flexible capital at attractive terms. By its terms, the loan or an equivalent amount will be allocated to eligible commercial property projects in Romania according to the company’s green loan framework.
“We are delighted, through this Loan, to be extending our collaboration with the IFC. It is our first green loan since we launched our inaugural green bond back in 2020 and we believe it firmly demonstrates the sustainability of the Globalworth business and the markets in which Globalworth operates,” commented Mihai Zaharia, Head of Investments Romania and Group Capital Markets Director, Globalworth.
IFC’s long-term funding will help the company—the largest office investor in Romania in terms of market value and gross lettable area—strengthen its liquidity position and achieve its environmental goals—100 percent of its commercial office portfolio to be green. The company has an investment property portfolio of modern and energy-efficient commercial property assets spread across Romania and Poland. About 90 percent of the company’s portfolio is comprised of environmentally friendly properties. In the face of uncertain market conditions exacerbated by the global pandemic and the recent war in Ukraine, IFC’s investment will further allow Globalworth to sustain operations, deliver investment projects, and launch new green projects in Romania.
“IFC strategy in Romania is focused on promoting a green, resilient and inclusive development. We are pleased to strengthen our partnership with Globalworth, a leading developer of green buildings and signal confidence in Romania`s office sector at the exit of the COVID-19 crisis,” added Ary Naïm, IFC’s Regional Manager for Central and Southeast Europe.
IFC has helped Globalworth develop a Green Loan Framework, which is in line with the Loan Market Association’s Green Loan Principles 2021. Under the Green Loan Framework, Globalworth will use Green Loans to finance or refinance eligible projects which will mainly contribute to climate change mitigation.