International Finance Corporation (World Bank Group) Makes €150M Sustainability-Linked Investment in Lion’s Head

International Finance Corporation (IFC) has provided a €150m investment with sustainability-linked features to Lion’s Head Investments (LHI), a commercial property platform in Bulgaria and Romania – JV between Old Mutual Property and AG Capital. The IFC facility includes a convertible instrument and a syndicated loan.

Lion’s Head currently owns and operates five office buildings situated in prime locations, two in Sofia – Polygraphia Office Center and Megapark and three in Bucharest – Oregon Park A, B & C. As of end-2023, the office buildings reached over 95% occupancy with global tenants such as Oracle, Deloitte, EY, Thermo Fisher, Bosch, Groupama. All of the buildings have green certificates (BREEAM and LEED) and high level of sustainability.

LHI is in process of building a new platform in the logistics and light industrial market in Bulgaria and Romania, which will be further supported by IFC’s investment. The company’s logistics assets will be certified with the IFC’s EDGE Advanced green building certification.

Commenting on the new investment, Christo Iliev, Executive Chairman of AG Capital, stated: “I am really pleased that after five years of successful partnership with Old Mutual, IFC has become our new global partner in Lion’s Head. This is a testament to the outstanding credentials of our business, and I am looking forward to further expanding our platform in the region.”

Ary Naïm, IFC Manager for Central and South Europe, commented on the role the financial support provided is expected to play for enhancing regional logistics infrastructure: “Strengthening logistics infrastructure and connectivity within regional and global value chains remain important objectives for Bulgaria and Romania in the current context. It is key for any new piece of infrastructure in the region to be built with the highest energy-efficiency standards, and we are pleased to be mobilizing financing to support Lion’s Head in the pursuit of this dual goal.”

Lion’s Head is a JV between Old Mutual Property, part of Old Mutual Limited, a major South African financial conglomerate, and AG Capital. The company currently owns and operates 5 office buildings in prime locations both in Sofia – Polygraphia Office Center and Megapark, and in Bucharest – Oregon Park’s Buildings A, B & C. As of 2023, all 5 buildings have reached an occupancy rate of over 95%, hosting leading global tenants Oracle, Deloitte, EY, Thermo Fisher, Bosch, Groupama and more.

As a member of AG Capital, and within our group corporate strategy, Lion’s Head has a committed approach and a consistent programme of activities for introducing sustainable practices, and affirming all 5 Class A assets as modern green office buildings in Bulgaria and Romania. The company’s flagship project in Sofia, Polygraphia Office Center, holds the globally recognised LEED Gold Certification for Existing Buildings, for its efficiency in building planning and sustainable management.

Megapark has recently earned its first international green-building acknowledgement with the Building Research Establishment Assessment Method (BREEAM) Excellent certificate, awarded for meeting sustainable construction, operation, and design standards.

Oregon Park’s 3 buildings are also proud holders of both the BREEAM Excellent and the WELL Health & Safety certificates, in recognition of their responsible policy for energy efficiency, waste treatment, water supply and the overall sustainable offering of a healthy workplace environment to their tenants.

The International Finance Corporation (IFC) is the largest global development institution focused on the private sector in emerging markets. IFC works in more than 100 countries, using its capital, expertise, and influence to create markets and opportunities in developing countries. IFC has committed the record $43.7 billion during the 2023 fiscal year, to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity, as economies grapple with the impacts of global compounding crises.

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