In addition to the IFC's contribution, the AIIB (Asian Infrastructure Investment Bank) will invest an equivalent amount, bringing the total value of the bond issue to €200 million. It is estimated that this project will directly finance 10 projects in the three countries, worth approximately €600 million. This investment will also strengthen the resilience of the energy sector in the three countries, helping to diversify their energy sources.

"We are honored to partner with the IFC and AIIB, two international organizations that share our vision of sustainable development, to support sustainable transition and encourage private investment in emerging markets," said Mr. Sebastian Firlinger, Acting CEO of Kommunalkredit. ”This transaction represents the beginning of what we see as a long-term and impactful partnership between our three organizations."

In Bulgaria, Poland and Romania, energy from renewable resources now accounts for only 14-19% of the total energy mix, well below EU targets.

"Our investment in Kommunalkredit's bonds will direct this critical financing to sustainable energy projects in Bulgaria, Poland and Romania," said Mr. Vittorio Di Bello, IFC Regional Director for the Financial Institutions Group for Europe, Latin America and the Caribbean. "Supporting financial intermediaries, such as Kommunalkredit, will allow us to leverage their expertise to support the transition to a low-carbon economy in key regions, thereby contributing to the diversification of energy sources and stimulating sustainable and inclusive economic growth."

In the long term, IFC's strategy for Bulgaria, Poland and Romania aims to accelerate the transition to a low-carbon economy and resilient and inclusive growth. IFC has been actively involved in these countries for several years, focusing on stimulating economic progress, improving infrastructure and promoting energy access.

IFC, a member of the World Bank Group, is the largest international development institution focused on the private sector in emerging markets. We are present in more than 100 countries and leverage our capital, expertise and influence to build markets and create opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, harnessing the power of the private sector and mobilizing private capital to create a world without poverty on a livable planet.