PENY Eurobond

Location:

Romania

Project number:

49558

Business sector:

Property and tourism

Notice type:

Private

Environmental category:

B

Target board date:

01 Nov 2017

Status:

Signed

PSD disclosed:

30 Jan 2018

Project Description

The EBRD has subscribed EUR 50 million into a EUR 500 million Eurobond first issuance by NE Property Cooperatief U.A. (the "Issuer") and guaranteed by NEPI Rockcastle Plc, under a larger bond Euro medium-term note ("EMTN") programme. The bond is listed on the Irish Stock Exchange and on the Bucharest Stock Exchange.

Project Objectives

The proceeds from the bond issue will be used to fund NEPI Rockcastle's projects under development and new acquisitions, with a focus on retail properties located in the wider CEE region, both in capital and regional cities.

Transition Impact

The main transition impact for this project is expected to be "green" and derives from the Issuer's commitment to continue to comply with good international practices related to environment, to apply for a green In-Use building certification for new acquisitions and developments, to be documented by international green certification (BREEAM or LEED) issued by independent accredited professionals for a large number of the assets financed with the bond proceeds resulting from EBRD's subscription.

Also, the listing of the bond on the Bucharest Stock Exchange supports the deepening of the capital market in Romania.

Client Information

NE PROPERTY COOPERATIEF UA

NEPI Rockcastle is focused on acquiring, developing and managing retail assets in CEE. The Issuer, incorporated in Netherlands, is owned by NEPI Rockcastle Plc , a public limited liability company incorporated in the Isle of Man and listed on the Johannesburg Stock Exchange ("JSE") and Euronext Amsterdam ("Euronext").

EBRD Finance Summary

EUR 225,000,000.00

EBRD invested EUR 50 million in the first bond issue under the EMTN programme and obtained delegation of approval for additional investment in the next bond issues within the EMTN programme envisaged.

Total Project Cost

EUR 1,500,000,000.00

For the total EMTN programme.

Environmental and Social Summary

Categorized B (2014 ESP). Given the capital market nature of the Project, the Environmental & Social Due Diligence (ESDD) for the Project was based on the review of the publicly available information. The ESDD showed that NEPI Rockcastle is in compliance with the relevant law as well as is publicly committed to environmental sustainability through various actions including up-grade of acquired assets and development in compliance with the best international standards, documented by BREEAM or LEED certification for several of its buildings. The Group has adequate environmental and social risk management capacities and policies in place to ensure that the Project complies with EBRD's PRs.

The ESDD also revealed the Issuer public commitment to sustainability, equal and non-discriminatory treatment of the employees, community engagement, resource efficiency and increased number of BREEAM certified buildings. NEPI Rockcastle obtained BREEAM Very Good or Excellent certification for over 15 of its larger assets in Romania. Under the Project, NEPI Rockcastle is committed to pursue sustainability in a systematic manner across the portfolio and aims to increase the number of assets in its portfolio with green certification. The ESDD also confirmed the Group's legal compliance and it is in process of implementing and obtaining the ISO 14001: 2015 certificates.

Technical Cooperation

None.

Company Contact Information

Mirela Covasa
mirela.covasa@nepirockcastle.com
+4 021 232 1398
www.nepirockcastle.com
301 # 311 Barbu Vacarescu St, 3rd floor, Bucharest 2, 020276, Romania

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

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Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.