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AIIB Works with Banca Transilvania and IFC to Support Green Housing in Romania with Bond Investment Project
"This project is an example of an investment in green infrastructure, one of AIIB's priorities under its Corporate Strategy. Moreover, the project is categorized as 100 percent climate finance and Paris Agreement-aligned," said Konstantin Limitovskiy, AIIB's Vice President for Investment Operations (Region 2: Pakistan , Afghanistan , Central Asia , East Asia , West Asia , Europe , Africa and Latin America ). AIIB's new investment operations are now aligned with the Paris Agreement as of July 1, 2023 .
"In addition, this project will also help support Romania's progress toward decarbonization and the government's efforts to provide modern, affordable and energy efficient homes to the local population," Limitovskiy added.
Also investing in this bond issuance alongside AIIB is the International Finance Corporation (IFC), which is putting up an equivalent EUR100 million .
In its Sustainable Development Strategy 2030, Romania has set a target of intensifying its efforts to achieve the transition to a green economy characterized by low carbon dioxide (CO ) emissions. Furthermore, the government has zeroed in on energy efficiency improvements in buildings, including via programs that focus on thermal rehabilitation of apartment blocks. An average apartment in Romania consumes twice as much heat as an average apartment in other European countries, which leads to pollution, high energy bills, high energy subsidies and dependence on energy imports. The National Long-Term Renovation Strategy foresees a need for, approximately, EUR13 billion for the renovation of buildings by the year 2030 in order to meet the European commitments.
Ömer Tetik, Chief Executive Officer, Banca Transilvania , said, "The new financing facility helps us intensify our sustainable financing efforts in areas of interest for the transition to a sustainable economy in Romania . Thus, directing the proceeds towards energy-efficient mortgages will decrease energy consumption and greenhouse gas emissions while ensuring improved housing conditions."
More information about the project can be found here.
View original content:https://www.prnewswire.co.uk/news-releases/aiib-works-with-banca-transilvania-and-ifc-to-support-green-housing-in-romania-with-bond-investment-project-301878339.html