IFC invests €150 million in green logistics in Bulgaria and Romania

Green Forum
The International Finance Corporation (IFC) committed up to €150 million to support the growth of a Bulgaria-based commercial property investment company, facilitating its entry into green warehousing in Bulgaria and Romania. This initiative aims to enhance accessibility to top-tier logistics infrastructure in both nations while contributing to Europe's transition towards sustainability.

The financing package provided by IFC to Lion's Head Investments includes a senior loan of €45 million, €65 million from IFC under the Managed Co-lending Portfolio Program, and a convertible loan amounting to €40 million. These funds will enable the company to develop new green logistics and light industrial facilities in Bulgaria and Romania, enhance energy efficiency, and upgrade existing office assets in Romania.

All loans from IFC are tied to sustainability criteria, contingent upon the company achieving the EDGE (Excellence in Design for Greater Efficiencies) advanced certification for its logistics facilities. This certification, part of IFC's global green building initiative, focuses on enhancing resource efficiency in buildings.

Lion's Head Investments, a joint venture between Old Mutual Property, a division of Old Mutual Limited—a South African financial conglomerate—and AG Capital, a prominent regional real estate group, welcomes IFC as its new global partner. Christo Iliev, Founder of AG Capital, expressed his satisfaction with the partnership, emphasizing its recognition of their business's merits and anticipating further regional expansion.

Ary Naïm, IFC Manager for Central and South Europe, highlighted the significance of bolstering logistics infrastructure and connectivity within regional and global value chains for Bulgaria and Romania. He stressed the importance of adhering to stringent energy-efficiency standards in constructing new infrastructure, underscoring IFC's support for Lion's Head Investments in pursuing these objectives.

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Green Forum  |  17 May, 2024 at 9:00 AM