Romania: Real estate's ESG commitment supported by banks


The real estate market aligned with the UN Sustainable Development Goals

BRD, Societe Generale subsidiary in Romania, together with Garanti BBVA Romania granted NE Property BV, a company wholly owned by NEPI Rockcastle, an ESG (Environmental Social and Governance) loan amounting to EUR 120 million, with an accordion option of EUR 120 million (the principle of the accordion rate is that it guarantees the same monthly payment for the entire duration of the loan). 

An ESG linked loan is a financing instrument that incentivizes the borrower to achieve agreed sustainability performance objectives.

NEPI Rockcastle is a leading company in the CEE real estate market, operating 52 retail properties in 9 countries, 20 of them in the most important cities across Romania, with an advanced sustainability strategy aiming to apply the best market practices having objectives aligned with the UN Sustainable Development Goals. 

Its sustainability strategy is based on four major pillars addressing all areas of sustainability, like sustainable resource management, sustainability through certified green buildings, community engagement and people and business integrity with clearly defined targets.

The loan structured by BRD assures coherence of the sustainability strategy of the company with the financing, and applies the best practices in the field, as reflected by the Loan Market Association Sustainability-Linked Loans Principles. It also supports the client in achieving its sustainability strategy and contributions to the achievement of the United Nations Sustainable Development Goals. An increased performance of the borrower reflected in its ESG rating will mean a lower impact on the environment and a contribution to the societal aspects.

For BRD, the transaction is all the more important as it follows another one - the green bond issue successfully concluded by NEPI Rockcastle, in which Societe Generale took on the role of green structuring agent and ESG consultant. Our portfolio of sustainable financing thus expands through this ESG loan, arranged and structured by our bank, following other significant transactions, including the loan for Hidroelectrica, the largest green loan granted so far in Romania.
Yves Lallemand,BRD Deputy CEO, coordinator of Corporate Banking activities
To NEPI Rockcastle, sustainability is on the list of priorities and has become a lifestyle over time, rather than a necessity. We want to be an example for the community in which we operate, and for this reason, we focus on investing in sustainable development operations and allocating funds for eligible green projects in projects carried out by the group in CEE markets. Our goal is to encourage consumers and stakeholders to join this movement by taking these sustainable actions, because responsibility is an action, not a trend.
Mirela Covașă,NEPI Rockcastle CFO