IFC Partners with UniCredit Bank to Boost Access to Climate Finance in Romania
Summary
IFC invests in UniCredit Bank`s bonds to bolster countrys climate finance market and support net-zero targets. Up to a quarter earmarked for green housing loans to women.Bucharest, Romania, November 25, 2024A new IFC investment in senior bonds issued by UniCredit Bank S.A., the Romanian subsidiary of UniCredit S.p.A., representing the first tranche of the total 108 million investment approved in relation to UniCredit Bank`s Euro Medium Term Notes Programme, will expand access to green loans for small and medium enterprises (SMEs) and individuals, including women, to bolster the countrys climate finance market and support its green transition.Romanias energy intensity remains over 60 percent higher than the EU average, even after a 30 percent reduction over the past decade. Although this presents a challenge, the country has committed to increasing its renewable energy consumption to 30.7 percent by 2030. This funding is part of a broader program to strengthen Romanias emerging climate finance market, fostering competition and encouraging replication by other banks.According to the 2023 World Bank Group Romania Country Climate and Development Report (CCDR), the country needs total investments of $356 billion to achieve net-zero emissions by 2050, with two-thirds expected to be financed by the private sector. In alignment with these projections, IFC has been actively supporting Romanias decarbonization targets and transition to a low-carbon economy.Romania represents IFCs largest country exposure in Europe, with a portfolio of $2.1 billion, and its ninth largest globally.