New renewable energy investments through 100 million euro bonds will be available in Bulgaria, Poland and Romania

The International Finance Corporation (IFC), part of the World Bank Group, is investing up to 100 million euro in senior unsecured bonds issued by Kommunalkredit Austria AG. They are to stimulate financing for sustainable infrastructure projects in Bulgaria, Poland and Romania, the institution announced on its official website. This is the first investment by the International Finance Corporation in the three countries.

The investment is backed by the Asian Infrastructure Investment Bank (AIIB), allowing the bonds to reach their target size of 200 million euros.

The project is expected to directly finance 10 projects in the three countries, mainly for wind power capacity, the total value of which is approximately 600 million euros, BTA reported.

This investment will help increase the total installed capacity for renewable energy production in Bulgaria, Poland and Romania, helping to diversify the energy mix.

“ “This collaboration marks the first step in what we hope will be a long-term partnership between the three organizations,” he added.

 We are pleased to join forces with the International Finance Corporation and the Asian Infrastructure Investment Bank, two global organizations that share our vision for sustainable development, advancing the sustainable transition and stimulating private sector investment in emerging markets,” said Sebastian Vierlinger, acting CEO of Kommunalkredit Austria AG.

The energy sectors of Bulgaria, Poland and Romania are characterized by high greenhouse gas emissions, and currently the share of renewable energy represents only 14-19 percent of their total energy mix, which is well below the EU’s targets, the International Finance Corporation said.

“Our investment in Kommunalkredit Austria AG bonds will channel essential financing for access to energy projects in Bulgaria, Poland and Romania,” said Vittorio Di Bello, IFC’s regional director for the financial institutions group in Europe and Latin America and the Caribbean.

“Supporting financial intermediaries like Kommunalkredit Austria AG allows us to apply their expertise to promote sustainable transitions where they are most needed, including diversifying energy supplies towards renewable sources to drive sustainable and inclusive economic growth,” he added.

The institution’s long-term strategy in Bulgaria, Poland and Romania aims to help accelerate sustainable transitions by fostering innovation and improving access to climate finance. IFC is actively working in these countries, focusing on accelerating economic growth, improving infrastructure and access to energy.

The International Finance Corporation is a subsidiary of the World Bank and is the largest global development institution focused on the private sector in emerging markets. In 2024, the institution invested a record $56 billion in private companies and financial institutions in developing countries.

Kommunalkredit Austria AG is a leading specialist bank in the field of European infrastructure and energy. The bank provides customized financial solutions and advisory services aimed at financial investors, entrepreneurs, independent power producers, concession corporations and utility companies. The areas in which the bank's activities focus include energy and environment, communications and digitalization, transport, social infrastructure, and natural resources.