International Development Bank, EBRD, grants EUR 120 million loan to AFI Europe for expanding green projects across regions.
Loan for Sustainable Real Estate Expansion Across CEE
The European Bank for Reconstruction and Development (EBRD) is throwing its weight behind AFI Europe, doling out a whopping €120 million loan to aid the company's expansion across several Central and Eastern European (CEE) territories – Serbia, Poland, Romania, and the Czech Republic. That's right, folks! This injection of cash will set AFI Europe on a path to grow its turf in the realm of sustainable residential and commercial real estate.
Eager to be green? So is AFI Europe, as part of this agreement, they've pledged to ensure that all buildings financed through this loan will strut their stuff with high-level sustainability certifications. Additionally, the company is prepping a corporate climate governance action plan, joining forces with the EBRD. This move lines up with the forthcoming EU directive on corporate sustainability reporting, placing AFI Europe on the cutting edge of environmental standards in the real estate sector.
Vlaho Kojakovic, Head of Real Estate at the EBRD, pronounced that this investment aligns with the bank's Real Estate Sector Strategy 2025-29, which tackles the green transition, fortifies human capital resilience, and takes on housing shortages head-on. Kojakovic further emphasized that this financing underscores the bank's commitment to fostering sustainable development, readying businesses for regulatory trials to come, and championing top-notch environmental standards in the real estate scene.
Be on the lookout for the growth of AFI's private rental sector (PRS) initiatives. The company's already made a splash with PRS projects in Poland and the Czech Republic and is setting up shop in Serbia. The ultimate goal? To extend the PRS portfolio all the way to Romania, tackling the regional housing deficit while pulverizing AFI Europe's status as a formidable market leader in this segment.
Anat Dafna, Chief Financial Officer of AFI Group, voiced her approval of the collaboration: "We're ecstatic to team up with the EBRD, which will propel AFI Group forward in its strategy and allow us to expand our portfolio in the region. This new financing adds to our financial firepower and showcases our dedication to sustainability."
AFI Europe, based in the Netherlands and fully owned by Israeli-listed AFI Properties Ltd, champions the development, ownership, and management of income-generating commercial real estate with a focus on office buildings, residential rentals, and select retail and shopping center projects.
(Photo: Alekleks/ Dreamstime)
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Fun Fact: The European Bank for Reconstruction and Development (EBRD) was founded in 1991 and has supported a total of €150 billion in more than 5,000 projects across 41 economies – making it an influential player in the financing of development and transformation in Central and Eastern Europe and the former Soviet Union.
- The loan from the European Bank for Reconstruction and Development (EBRD) will not only aid AFI Europe's expansion in Central and Eastern European (CEE) territories but also encourage the growth of sustainable residential and commercial real estate.
- Recognizing the impending EU directive on corporate sustainability reporting, AFI Europe has partnered with the EBRD to develop a corporate climate governance action plan, aligning with their focus on sustainable living and home-and-garden initiatives.
- With the infusion of €120 million from the EBRD, AFI Europe is poised to invest in business sectors such as finance, lifestyle, and real-estate, demonstrating a commitment to sustainable development and strengthening its position as a market leader in the private rental sector (PRS) across several CEE countries.
