Globalworth Real Estate Investment Bond II

Location:

Romania

Project number:

50015

Business sector:

Property and tourism

Notice type:

Private

Environmental category:

B

Target board date:

14 Mar 2018

Status:

Signed

PSD disclosed:

25 Apr 2018

Translated version of this PSD: Romanian

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; 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

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

None.

Company Contact Information

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

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