EBRD Invests €76 million in VGP green bond to support sustainable logistics development in CEE

by   CIJ News iDesk III
2025-05-20   17:36
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The European Bank for Reconstruction and Development (EBRD) has invested €76 million in a tap issuance of VGP’s green bond programme, increasing the total volume of the March 2025-issued €500 million senior unsecured green bonds to €576 million. Maturing in January 2031, the proceeds will support VGP’s efforts to expand its sustainable industrial and logistics real estate portfolio in Croatia, Czechia, Hungary, Romania, Serbia and the Slovak Republic.

The investment aligns with the EBRD’s strategic goals to promote green economic development and support sustainable infrastructure across its regions of operation. The allocated proceeds from the EBRD’s participation are earmarked for projects that meet EU taxonomy standards. These include assets that exceed energy performance requirements, renewable energy developments, and the acquisition of buildings that rank among the most energy-efficient in their respective markets, such as those holding an EPC A rating or falling within the top 15 per cent of national building stock.

With demand for high-quality logistics infrastructure rising in Central and South-Eastern Europe, the investment aims to address the undersupply of A-class, environmentally compliant warehouse and industrial spaces in the region.

Vlaho Kojakovic, Head of Real Estate at the EBRD, highlighted the broader significance of the investment: “VGP’s green bond programme facilitates the expansion of sustainable logistics assets in markets that require modern, energy-efficient facilities. Our support reflects the EBRD’s commitment to accelerating the decarbonisation of the real estate sector and aligns with our Real Estate Strategy 2025–29 and Green Economy Transition agenda.”

Jan Van Geet, CEO of VGP, welcomed the EBRD’s continued partnership: “This investment enables us to meet the growing demand for sustainable and efficient logistics infrastructure across key Central and Eastern European markets. We are focused on delivering buildings that meet high environmental standards and contribute to the sector’s green transition.”

VGP is a pan-European provider of logistics and semi-industrial properties focused on sustainability and high-quality real estate solutions. The EBRD, a longstanding investor in the region, has invested a total of €35.2 billion across Croatia, Czechia, Hungary, Romania, Serbia and the Slovak Republic to date.

Photo: VGP Usti nad Labem City

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