Globalworth Real Estate Investment

Location:

Romania

Project number:

49290

Business sector:

Property and tourism

Notice type:

Private

Environmental category:

B

Target board date:

07 Jun 2017

Status:

Signed

PSD disclosed:

24 Aug 2017

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 9% of the total bond issue. The Eurobond is dually listed on the Bucharest Stock Exchange ("BSE") and the Irish Stock Exchange ("ISE"), representing the first dual-listing bond from Romania and the first benchmark size corporate Eurobond listed on the BSE.

Project Objectives

The overal objectives of the project include:
(i) a successful fund raising of at least EUR 400 million - it 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 from the demonstration of new financing methods. The listing of a large corporate Eurobond (non-bank and non-utilities) on the Bucharest
Stock Exchange, issued by a company with its prime focus on Romania, is expected to contribute to the development of the local capital market. The issue is the first Romanian corporate Eurobond to reach the benchmark size for inclusion in global indices. The Issuer is focused on sustainability, with about half of the portfolio green certified, and is committed to expand the certification across the rest of the portfolio.

Client Information

GLOBALWORTH REAL ESTATE INVESTMENTLIMITED
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. It is listed on the Alternative Investment Market of the London Stock Exchange and had a market capitalization of EUR 665 million as of 24 August 2017. GREIL is the largest office property owner and developer in Romania, with a portfolio of prime office assets worth EUR 1.03bn as of March 31st 2017.

EBRD Finance Summary

EUR 50,000,000.00

Total Project Cost

EUR 550,000,000.00

Environmental and Social Summary

Categorized B (2014 ESP). Environmental and social issues associated with a bond issue by a real estate investment company are readily identified and can be addressed through adequate formal environmental and social risk management procedures. Given the nature of capital markets transactions, Environmental and Social Due Diligence (ESDD) has been based on a review of publicly available information contained in the Issuer's official documentation and the completed Environmental & Social Questionnaire. The ESDD showed that the Issuer has adequate environmental and social risk management capacities and systems in place. Romania is an EU Member State and its environmental and social legislation is in line with EU standards and requirements. Furthermore, the future sub-projects are limited to Romania and Poland, another EU member state. Eight of the existing 15 assesses are office buildings with LEED Gold or BREEAM Very Good. The existing portfolio comprises of office, residential, light industrial (one asset) and warehouse (one asset) buildings. For the future investments, the Issuer is looking for green buildings to achieve at least LEED Gold or BREEAM Very Good. Given the EU legal environment, portfolio and green strategy, the project's environmental and social risk is limited. The framework agreement signed with the EBRD incorporates the requirement that the Issuer and its subprojects comply with
the Bank's Performance Requirements and national environmental and social law.

Technical Cooperation

Not applicable.

Company Contact Information

Stan Andre - Deputy CIO
Stan.Andre@globalworth.com
+40 372 800 000
+40 371 600 000
www.globalworth.com
Globalworth Tower, 26th floor, 201 Barbu V#c#rescu Boulevard, 2nd district, 020276, Bucharest, 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)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
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.