48424 - NEPI UCL

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Summary of Investment Information

Project Number

48424

Company Name

NE PROPERTY B.V.

Date SPI Disclosed

Jan 17, 2024

Country

Eastern Europe Subregion

Region

Europe

Projected Board Date

Dec 14, 2023

Environmental Category

B - Limited

Status

Active

Last Updated Date

Apr 30, 2024

Department

Regional Industry MAS LAC & EUR

Industry

other

Previous Events

Approved : Dec 14, 2023
Signed : Dec 20, 2023
Invested : Feb 12, 2024

Sector

other

Project Description

The IFC investment consists of a green syndicated financing package with sustainability linked features of up to €500 million with a 5-year tenor for NE Property B.V. (NEPC or the Company), an existing IFC client and a wholly owned subsidiary of NEPI Rockcastle (NEPIRC or together with its subsidiaries, the Group), the largest retail property landlord and operator in Central and Eastern Europe (CEE) (the IFC Loan). The proceeds of the IFC Loan will be allocated to refinance an existing portfolio of green-certified retail assets in Bulgaria and Romania (the Project Countries), in accordance with the use of proceeds criteria and selection process described in NEPIRC’s Green Finance Framework, and more specifically, used to repay the Company’s outstanding Eurobond due on November 23, 2024 (the Project).

Associated Advisory Engagement

IFC’s upstream advisory work consists of three engagements that support NEPIRC in advancing its decarbonization, sustainability, and equality strategies. Firstly, IFC will assist the Group in identifying, managing, and disclosing building resilience risks using IFC’s Building Resilience Index (BRI) tool. By employing a Life Cycle Assessment approach for materials and construction processes, strategies to reduce embodied emissions will be identified, using IFC’s Greening Real Estate Institutional Portfolio (GRIP) program. Finally, IFC will help the Group implement the EDGE Gender global standard and provide assistance in certification preparation.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	245.61
Equity

Development Impact

The most significant expected Project-level outcome is increased access to high-quality green retail infrastructure in the Project Countries, achieved amongst others through the delivery of low-carbon and modern property retail space. Additionally, the Project is expected to have positive environmental effects, particularly through improved energy efficiency of the buildings. Beyond the Project, IFC anticipates that the investment will facilitate the connection between the Commercial Real Estate sector in the Central and Eastern Europe region and the broader financial markets.

IFC will provide a countercyclical loan to NEPIRC to balance out capital markets challenges caused by the geopolitical tensions in the region, inflationary pressures and consequential rising interest rates. This unsecured facility will be innovatively structured as a green loan with sustainability-linked features. The interest rate of the IFC Loan will be adjusted annually based on climate targets to reduce the intensity of both GHG emissions and energy consumption. IFC will also play an important role in mobilizing financing from third-party lenders. This will help the Company diversify its financing sources and gain access to a sustainable unsecured funding. IFC will also provide upstream advisory support to NEPIRC in advancing its decarbonization, sustainability, and equality strategies. Firstly, IFC will help identify, manage, and disclose building-resilience risks using IFC’s BRI tool. Secondly, through the GRIP program, IFC will help identify measures to reduce embodied emissions. Thirdly, IFC will support NEPIRC to prepare for and attain EDGE Gender certification, which will help the Group enhance its workforce diversity and promote inclusivity.

E&S Category Rationale / Risks and Mitigation

The Project is a Category B project in accordance with IFC’s Policy on Environmental and Social Sustainability. Key E&S risks and impacts associated with the Project include design and construction of buildings in accordance with national construction codes and good international industrial practices, particularly related to seismic resistance and life and fire safety; and effective implementation of the environmental, occupational health and safety management plans, including construction.

Contacts

For Inquiries About the Project, Contact

NEPI Rockcastle N.V.

CFO
+ 40 21 232 13 98
Eliza.Predoiu@nepirockcastle.com
NEPI Investment Management SRL, Building A, 5th floor, 169A Calea Floreasca, Bucharest 1, 014459
https://nepirockcastle.com/

For Inquiries and Comments About IFC, Contact

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

Local Access of Project Documentation

Bulgaria and Romania

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. Its purpose is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Summary of Investment Information

Project Description

Associated Advisory Engagement

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation

Similar Projects

Contacts

Projects

Summary of Investment Information

Project Description

Associated Advisory Engagement

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

IFC's Investment as Approved by the Board

Location of Project and Description of Site

Development Impact

Anticipated Impact Measurement & Monitoring (AIMM) Assessment

IFC's Role and Additionality

E&S Category Rationale / Risks and Mitigation

Environmental & Social Categorization Rationale

Environmental & Social Management System (ESMS)

Mitigation Measures / Environmental & Social Action Plan (ESAP)

Press-Release

Related Environmental Document

Similar Projects

Contacts

Disclaimer