Globalworth Real Estate Investment II

Location:

Romania

Project number:

50015

Business sector:

Property and tourism

Notice type:

Private

Environmental category:

B

Approval date:

14 Mar 2018

Status:

Complete

PSD disclosed:

25 Apr 2018

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

EBRD approved investment in a senior unsecured corporate Eurobond issue launched by Globalworth Real Estate Investment Limited ("GREIL" or the "Issuer"), a Guernsey incorporated public limited liability company. The Bank's investment represented 10.9% of the total bond issue. The Eurobond will be dually listed on the Bucharest Stock Exchange ("BSE") and the Irish Stock Exchange("ISE").

Project Objectives

The overall objectives of the project include:

(i)  a successful fund raising of at least EUR 500 million with a tenor of at least 7 years i this was achieved at subscription, with GREIL raising a total of EUR 550 million; and

(ii) a good financial and operational performance - that is monitored during the project implementation, with particular focus on growth in revenues, profitability and cash flows, as well as

no payment defaults under the bond.

Transition Impact

ETI score: 62

The expected transition impact of the project stems primarily from resilience of capital markets, making this the third corporate (non-bank and non-utilities) Eurobond listed on the local market, but only the second with a 7 year tenor, together with the previous 5-year issue, creating a reference yield curve.

Client Information

GLOBALWORTH REAL ESTATE INVESTMENT LTD

The Issuer is focused on acquiring, developing and managing real estate assets in the Central and South-East Europe, with a prime emphasis on Romania and Poland. It is listed on the Alternative Investment Market of the London Stock Exchange and had a market capitalization of EUR 1.2 billion as of 10 April 2018. GREIL is the largest office property owner and developer in Romania and Poland, with a portfolio of prime office and mixed use assets worth EUR 1.8 billion as of December 31st 2017.

EBRD Finance Summary

EUR 100,000,000.00

Total Project Cost

EUR 790,000,000.00

Environmental and Social Summary

Categorised B (2014 ESP). Environmental and social issues associated with the transaction in the real estate investment company are readily identified and can be addressed through adequate environmental and social risk management procedures. Environmental and social due diligence (ESDD) which was carried out for the preceding projects with this client in 2017 is still valid and applicable for the Project. The previous ESDD showed that the client is in legal compliance and has adequate environmental and social risk management capacities and system in place. For this new transaction, the client is required to continue to ensure that the all operations are in compliance with the EBRD PRs, that the existing Environmental & Social Action Plan (ESAP) agreed with the GPRE (now majority owned by GREIL) is implemented and an Annual Environmental and Social Report (AESR) will need to be submitted to the Bank. The Framework Agreement will incorporate the requirements that the Company and its subprojects comply with the Bank's PRs and national environmental and social requirements. There is no formal GET element in the Project.

Previous ESDD was based on a review of publicly available information contained in the Company's official documentation and the completed Corporate Environmental and Social Questionnaire. The client's operations are limited to Romania and Poland, both EU Member States and therefore their environmental and social legislation is in line with EU standards and requirements. The existing portfolio comprises of office, residential, light industry and warehouse buildings. Eighteen of the existing 36 assets are office/ mixed-use buildings with LEED Gold or BREEAM Very Good. For future investments, the client would be required to achieve at least LEED Gold or BREEAM Very Good. The Bank will continue monitoring the client's environmental and social performance by reviewing the AESRs and carrying out site visits as required.

Technical Cooperation and Grant Financing

N/A

Company Contact Information

nullenquiries@globalworth.com
+4 (0) 372 800 000
www.globalworth.com
Globalworth Tower, 26th floor, 201 Barbu Vacarescu Boulevard, 2nd district, 020276, Bucharest, Romania

Implementation summary

The listing of the bond on the Bucharest Stock Exchange supported the deepening of the capital market in Romania, as this was the third corporate (non-bank and non-utilities) Eurobond listed on the local market and the only one with a 7 year tenor within Globalworth's bonds portfolio, which together with the previous 5-year one contributed to creating a reference yield curve. Globalworth has been committed to pursuing sustainability in a systematic manner across the portfolio and increasing the number of assets in its portfolio with green certification.

PSD last updated

16 Feb 2021

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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