NEPI UCL

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 The IFC investment consists of a green syndicated financing package with sustainability linked features of up to €500 million with a 5-year tenor for NE Property B.V. (NEPC or the Company), an existing IFC client and a wholly owned subsidiary of NEPI Rockcastle (NEPIRC or together with its subsidiaries, the Group), the largest retail property landlord and operator in Central and Eastern Europe (CEE). IFC investment will be limited to Bulgaria and Romania (the Project). ESRS for the existing project could be found here https://disclosures.ifc.org/project-detail/ESRS/38149/nepi-bond. NEPC will allocate an amount equivalent to the IFC Loan amount towards refinancing an existing portfolio of BREEAM Excellent-certified retail assets in Bulgaria and Romania, in accordance with the use of proceeds criteria and selection process described in the Group’s Green Finance Framework, which is disclosed at https://nepirockcastle.com/wp-content/uploads/2023/06/Green-Financing-Framework-June-2023.pdf. This will generate cash flows that will be used for liability management, specifically to repay a €500 million bond due in November 2024. The Group is the owner and asset manager of dominant commercial real estate, operating in nine countries in CEE. 99% of the portfolio is represented by shopping malls and remaining 1% is comprised of two office buildings (Slovakia, Bulgaria) and two light industrial properties in Romania. By geographic locations the largest presence is in Romania (36%), Poland (28%), Hungary (9%), Bulgaria (8%), Slovakia (8%) and 11% in total goes to Croatia, Czech Republic, Lithuania and Serbia. The portfolio in Romania includes twenty-seven retail properties and two industrial properties, in Bulgaria – two shopping malls and an office building. The industrial portfolio in Romania includes two properties in Rasnov and Otopeni with the total area of 28,710 GFA (Gross Floor Area) square meter used for warehousing and light manufacturing (assembling) operations. As of December 31, 2022, all shopping malls (except strip malls) had been BREAAM certified with level from “Very Good” to “Excellent”. According to its sustainability strategy on transition to green energy consumption, the Group is in the process of installation of rooftops solar PV panels, with the target to complete installations in 20 more assets within its Romanian portfolio by the end of 2023.