A new IFC investment in UniCredit Bank S.A. senior bonds issuances, representing a part of the total of $80 million approved amount in relation to UniCredit Bank's Euro Medium Term Notes Programme, will help increase access to finance for green housing in Romania, including green mortgages and green home improvement loans, supporting the country's climate goals.
In Romania, access to housing finance is still limited, and IFC's financing will help develop the green housing loan market. The residential housing market lags in green certifications while green housing finance is still at an early stage of growth. With IFC's support and global expertise, UCB will be able to develop internal capacity and ramp up the share of green housing in its overall portfolio.
According to estimates, over 95 percent of the buildings constructed before 2010 require energy-efficient refurbishing. To support the country's efforts to move towards a more sustainable future, the entire proceeds of IFC's bond investment will be used for green housing products while also helping reduce greenhouse-gas emissions.
Developing the green mortgage segment is especially important in Romania as households accounted for about 33 percent of the total final energy consumption in 2018. Therefore, improving energy efficiency in the residential sector will make an important contribution to climate mitigation.
IFC will provide internal knowledge and capacity on the green buildings' certification schemes, the concept of green mortgages, as well as introducing IFC's own Excellence in Design for Greater Efficiencies (EDGE) platform for the green buildings' certification.
