- AIIB and IFC are investing up to €100 million each in a senior unsecured bond issued by Kommunalkredit Austria AG to help finance infrastructure projects in Central and Eastern Europe.
- The investment will support the European Green Deal by boosting renewable energy capacity in Bulgaria, Hungary, Poland, Romania and Türkiye, and reducing their carbon footprint.
Kommunalkredit Austria AG (Kommunalkredit), a recognized leader in infrastructure financing, is issuing a €200 million bond with the International Finance Corporation (IFC)–a member of the World Bank Group–and the Asian Infrastructure Investment Bank (AIIB) each investing up to €100 million. This collaboration will help accelerate the green energy transition in Central and Eastern Europe (CEE) and Türkiye, with a focus on renewable energy projects, particularly wind power, as part of the region’s broader commitment to decarbonization.
Kommunalkredit has long been a trusted partner for supranational institutions in financing large-scale infrastructure projects. This new initiative unites IFC, AIIB and Kommunalkredit in their shared goal of financing green projects in the CEE region, a critical area for achieving European Union (EU) climate targets.
“With our passion for sustainable infrastructure projects, we have perfectly aligned missions with IFC and AIIB to drive green transition and private sector investments in emerging markets”, said Sebastian Firlinger, Acting CEO of Kommunalkredit. “We are honored to collaborate with supranational organizations in a field where we share a common vision for sustainable development. This transaction marks the first step in what we hope will be a long-term partnership between Kommunalkredit, IFC and AIIB.”
AIIB, with its mission to finance Infrastructure for Tomorrow, has approved several transformative projects in CEE and Türkiye, reflecting its commitment to fostering inclusive and sustainable development. By investing in renewable energy projects, AIIB seeks to enhance energy efficiency, reduce carbon emissions, and support the global transition to a low-carbon economy. These initiatives not only align with AIIB’s climate financing priorities but also aim to create long-term economic opportunities, improve energy access, and drive innovation in clean technologies.
“Our collaboration with Kommunalkredit and IFC brings together our collective expertise and resources. The investment is expected to support the green energy transformation in Romania, Poland, Hungary and Türkiye”, said Gregory Liu, Director General of Global Financial Institutions and Funds Department at AIIB. “Together, we are working toward a shared vision of sustainable infrastructure that meets the needs of the future and addresses climate challenges in this vital region.”
"Our investment in Kommunalkredit’s bond will channel critical funding into sustainable energy projects in Bulgaria, Poland, and Romania," said Vittorio Di Bello, IFC Regional Director for the Financial Institutions Group in Europe, and Latin America and the Caribbean. "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."
About AIIB
AIIB is a multilateral development bank dedicated to Financing Infrastructure for Tomorrow in Asia and beyond, with sustainability at its core. Established in Beijing in 2016, AIIB now has 110 approved members worldwide, capitalized at USD100 billion, and is AAA-rated by the major international credit rating agencies. AIIB collaborates with partners to unlock new capital and invest in green, technology-enabled infrastructure that enhances regional connectivity.
For more information, visit www.aiib.org
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet.
For more information, visit www.ifc.org and www.ifc.org/energy | IFC on social media
About Kommunalkredit
Kommunalkredit Austria is a leading specialist bank in the European infrastructure and energy space. The bank provides tailored financing solutions and advisory services to financial investors, developers, independent power producers, and corporates in the concession and utility sectors. By partnering with clients, Kommunalkredit creates sustainable value and facilitates the development of infrastructure projects that meet the growing demand for sustainable investment opportunities. Focus areas include Energy & Environment, Communications & Digitalization, Transportation, Social Infrastructure, and Natural Resources.
For more information, visit https://www.kommunalkredit.at/ | follow on LinkedIn
