IFC invests 150 mln euro in Lion’s Head for green logistics in Bulgaria, Romania

The funding will facilitate Lion's Head's development of new infrastructure in the green logistics and light industrial market, boosting its energy efficiency and enhancing its current office assets in Romania, IFC said in a statement on Wednesday.

The project seeks to bolster access to prime logistics infrastructure in both countries, contributing to Europe's green transition.

The financing includes a senior loan of 45 million euro, 65 million euro from IFC's syndications platform and a 40 million euro convertible loan. IFC loans are sustainability-linked, with the property firm's logistics assets receiving the EDGE advanced green building certification, which aims to make buildings more resource-efficient.

"Strengthening logistics infrastructure and connectivity within regional and global value chains remain important objectives for Bulgaria and Romania. It is also key for new infrastructure in the region to be built to the highest energy-efficiency standards, so we are pleased to be supporting LHI in pursuit of this dual goal," IFC manager for Central and South Europe Ary Naim said.

Lion's Head Investments is a joint venture between Old Mutual Property, part of South African financial conglomerate Old Mutual Limited, and Sofia-headquartered regional real estate group AG Capital. The firm currently owns and operates two office buildings in Sofia and three in Bucharest.

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets, working in over 100 countries. In 2023, IFC committed $43.7 billion to private companies and financial institutions in developing countries.

($ = 0.9252 euro)