IFC and AIIB Invest €200M in Kommunalkredit to Boost Sustainable Infrastructure in Eastern Europe

The IFC's investment is matched by an equal contribution from the Asian Infrastructure Investment Bank (AIIB), bringing the total issuance size of the bond to €200 million.

The International Finance Corporation (IFC) is making a strategic investment of up to €100 million in a senior unsecured bond issued by Kommunalkredit Austria AG (Kommunalkredit), marking IFC’s first-ever investment in a specialized infrastructure financial institution in Europe. This investment is aimed at advancing sustainable infrastructure projects in Bulgaria, Poland, and Romania.

The IFC's investment is matched by an equal contribution from the Asian Infrastructure Investment Bank (AIIB), bringing the total issuance size of the bond to €200 million. The combined investment is expected to directly finance at least ten infrastructure projects across the three countries, with a total transaction value of approximately €600 million. This initiative will play a crucial role in bolstering the energy sector’s resilience by diversifying the region’s energy mix and supporting the transition to sustainable energy solutions.

Sebastian Firlinger, Acting CEO of Kommunalkredit, emphasized the importance of this collaboration, stating, "We are delighted to join forces with IFC and AIIB—two global organizations that share our vision for sustainable development—to advance the sustainable transition and boost private sector investment in emerging markets. This transaction marks the beginning of what we anticipate will be an impactful long-term partnership between our three organizations."

Currently, renewable energy sources constitute only 14-19% of the total energy mix in Bulgaria, Poland, and Romania—well below the European Union’s targets for sustainable energy. By directing funding toward sustainable energy infrastructure, this investment seeks to accelerate the clean energy transition in these nations and contribute to a more resilient and diversified energy sector.

Vittorio Di Bello, IFC Regional Director for the Financial Institutions Group in Europe, Latin America, and the Caribbean, highlighted the significance of the investment: "Our investment in Kommunalkredit’s bond will channel critical funding into sustainable energy projects in Bulgaria, Poland, and Romania. By supporting financial intermediaries like Kommunalkredit, we can harness their expertise to drive the low-carbon transition in key regions, diversify energy sources, and spur sustainable and inclusive economic growth."

This initiative aligns with IFC’s broader long-term strategy in Bulgaria, Poland, and Romania, which aims to accelerate the shift toward low-carbon, resilient, and inclusive economic growth. IFC has been actively engaged in these countries, focusing on enhancing economic development, improving infrastructure, and expanding access to clean energy solutions. Through this collaboration, IFC and AIIB reaffirm their commitment to fostering sustainable development and strengthening private sector participation in the infrastructure sector.