EBRD backs logistics firm’s green bonds for Hungary, Latvia, Romania and the Slovak Republic.
The European Bank for Reconstruction and Development (EBRD) has invested in more than 10% of a €600m green bond issuance by VGP, a pan-European provider of logistics and semi-industrial real estate.
VGP has pledged that its group operations will reach net carbon neutrality by 2025 and is now working on implementing its decarbonisation strategy. It has new logistics parks planned that will be certified to a minimum BREEAM rating of very good and funding this and other work through green bonds is part of a growing move by industry to access rapidly growing green investment funds by adapting their businesses to be more sustainable.
The funding will directly support sustainable semi-industrial and logistics parks in Hungary, Latvia, Romania and the Slovak Republic. It will also enable the company to explore opportunities arising from the future deployment of renewable and low-carbon hydrogen technologies as well as circular design features to achieve a low embodied carbon framework at the building level.
Vlaho Kojakovic, EBRD director of property and tourism, said: “The Covid-19 pandemic has shown that more resilient, sustainable supply chains and a better logistics infrastructure are needed across the economies where the EBRD invests. VGP is at the forefront of addressing this supply gap, as well as delivering sustainable real estate needed to support new consumption patterns and maintain increased inventory levels.”
Jan Van Geet, CEO of VGP, added: “We are delighted to partner with the EBRD in developing sustainable industrial parks in economies where the bank invests.”
VGP has a long–standing presence in Hungary, Latvia, Romania and the Slovak Republic. It owns 13 large multi-tenant business parks already and has 880,000 square meters in development land.
