EBRD invests €76 million in VGP green bonds

This article is brought to you in association with EBRD.

• EBRD invests €76 million in VGP green bonds
• Logistics company will use investment to boost development and fund acquisitions
• EBRD financing earmarked for Croatia, Czechia, Hungary, Romania, Serbia and Slovak Republic

The European Bank for Reconstruction and Development (EBRD) has successfully subscribed to a €76 million ticket as part of the existing green bond programme of VGP, a pan-European provider of high-quality logistics and semi-industrial real estate.

The tap issuance will increase the size of the original €500 million senior unsecured five-year green bonds issued in March 2025 and maturing on 29 January 2031, bringing the total outstanding amount to €576 million.

The Bank’s investment will support VGP in developing and acquiring sustainable industrial and logistics parks in Croatia, Czechia, Hungary, Romania, Serbia and the Slovak Republic.

VGP’s efforts to enhance sustainability in industrial real estate align with the EBRD’s strategic priorities in supporting green transition across its regions. Through its work on certified developments, climate targets, and renewable energy capacity, VGP contributes to broader environmental goals that the EBRD seeks to promote among its clients and investee companies.

More specifically, EBRD proceeds will be allocated towards EU-taxonomy-compliant assets, buildings that perform at least 10 per cent better than nearly-zero energy buildings under the EU taxonomy, renewable energy capacity and the purchase of existing buildings that are either in the top 15 per cent or hold an EPC A certification. This will contribute to improving the sustainability performance of industrial real estate in central and south-eastern Europe, a market which remains undersupplied with A-class logistics stock and where EU-taxonomy-compliant buildings are scarce.

Vlaho Kojakovic, the EBRD’s Head of Real Estate, said: “Regulatory developments and the growing recognition of the long-term financial value of sustainable investments are driving demand for high-quality, modern industrial and logistics assets across the economies where the EBRD invests. VGP’s green bond programme supports the development of the logistics sector in undersupplied markets while embedding commitments to the sustainable performance of buildings and a shift towards decarbonisation in its operations. By investing in VGP’s green bond, the EBRD supports the development of green, high-quality buildings and logistics infrastructure, in line with the objectives of the EBRD’s Real Estate Strategy 2025-29 and the EBRD’s Green Economy Transition approach.”

Jan Van Geet, CEO of VGP, commented: “We are very pleased with the EBRD’s continued trust in VGP through this green bond investment. This support enables us to further advance the development and acquisition of sustainable logistics and industrial facilities across key markets in central and south-eastern Europe. These regions face growing demand for modern, efficient logistics infrastructure. Through this partnership, we aim to deliver buildings that meet high quality environmental performance standards and support the ongoing decarbonisation of the real estate sector.”

The EBRD is a major investor in Croatia, Czechia, Hungary, Romania, Serbia and the Slovak Republic. To date, it has invested €35.2 billion in the six countries combined.