International Finance Corporation co-operates with Kommunalkredit Austria
The International Finance Corporation (IFC) will invest €100 million. The funds will finance senior unsecured bonds issued by Kommunalkredit Austria. The bank provides financial support for infrastructure and energy-related projects. It is lending for sustainable initiatives in Romania, Bulgaria and Poland.
Asian Infrastructure Investment Bank has also invested a similar amount, bringing the total to €200 million. These funds will support ten projects in these countries. The total amount of financing will be around €600 million. This will strengthen the sustainability of the energy sector through asset diversification.
According to Vittorio Di Bello of IFC, the financing will contribute to the development of sustainable energy in the three countries. The initiative is being facilitated by Kommunalkredit Bank, which has extensive experience in implementing similar projects. The key objectives are:
– accelerating the transition to a low-carbon economy in regions that urgently need it;
– diversifying energy sources;
– stimulating sustainable and inclusive economic growth.
The investments also strengthen the European Green Deal. They aim to increase renewable energy capacity in Hungary and Turkey. Particular attention will focus on wind energy.
It is worth noting that this is IFC’s first investment in specialised infrastructure projects in Europe. The financial corporation intends to implement long-term strategic plans in the designated countries.
Information about IFC
The International Finance Corporation has been a department of the IMF since 1951. Its headquarters are in Washington. The IFC works as a structure for attracting private investment in projects of countries with developing economies.
The shareholders of the corporation are 184 states. The USA controls almost 24% of the votes, Japan – about 6%. The activities of the IFC are carried out with the support of other organisations and departments of the IMF, but legally and financially it operates independently.
The Finance Corporation carries out the following activities:
– provides loans;
– invests in equity projects;
– offers various financial products for risk management;
– gives advisory services.
The IFC does not require government guarantees when financing projects. It receives funds in the form of contributions from its member countries. It also issues bonds and receives income from its projects.
The IFC finances a wide range of projects around the world. It is interested in initiatives that improve infrastructure and people’s living conditions. In recent years, it has focused on alternative energy projects. In this way, it helps emerging economies accelerate their transition to carbon neutrality.
