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Credit: NEPI
Credit: NEPI

EBRD invests €50 million in new NEPI Rockcastle benchmark-size Eurobond

The EBRD is supporting capital market development in Romania with a €50 million investment in the second benchmark-sized €500 million corporate bond issued by NE Property B.V.

The firm is owned by NEPI Rockcastle, a leading property investment and development group which is present in nine markets across central and southeast Europe, with Romania making up the largest share of the company’s portfolio.

NE Property B.V.’s Eurobond issue marks the second phase of a €1.5 billion medium-term note programme. In 2017, the EBRD invested €50 million in the company’s €500 million bond issuance, which was the first investment-grade corporate Eurobond issue listed on the Bucharest Stock Exchange.

The proceeds will be used to refinance existing debt, fund the completion of projects under development and purchase new commercial real estate assets in the region. The issuer is also committed to seeking globally-recognised green certification for developments financed with bond proceeds.

Like the first bond, the new issuance will be listed on both the Irish Stock Exchange and the Bucharest Stock Exchange, providing another boost to Romania’s capital markets. 

Romania has the lowest use of debt capital markets amongst the economies of central and southeast Europe. The Bank has been at the forefront of the development of Romanian capital markets since 2013. Earlier this month, the EBRD has backed the country’s first covered bond, a €200 million offering by Alpha Bank Romania.

The EBRD is a leading institutional investor in Romania and to date has invested over €8.3 billion in the country, primarily in the private sector. In 2018 alone, it committed over €400 million across various sectors of the Romanian economy.