Nepi Rockcastle first bond issue (former project Peny

Location:

Romania

Project number:

49558

Business sector:

Property and tourism

Notice type:

Private

Environmental category:

B

Approval date:

01 Nov 2017

Status:

Signed

PSD disclosed:

30 Jan 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

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

ETI score: 58

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 BV

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 175,000,000.00

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 1,450,000,000.00

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 and Grant Financing

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

Implementation summary

The proceeds from the bond issue were 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. The listing of the bond on the Bucharest Stock Exchange supported the deepening of the capital market in Romania. NEPI Rockcastle committed to pursue sustainability in a systematic manner across the portfolio and to increase the number of assets in its portfolio with green certification.

PSD last updated

25 Aug 2020

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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