Original disclosure @ EBRD website
Updated in EWS Dec 9, 2022
Disclosed by Bank Nov 1, 2022
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A senior loan of up to up to PLN 229 mln (ca. EUR 48 mln) in favour of Parkur PropCo Sp. z o.o., Bemowo PropCo Sp. z o.o., Mokotow I PropCo Sp. z o.o. and Mokotow II PropCo Sp. z o.o. ("Co-Borrowers"), which are fully owned by NREP Nordic Strategies Fund IV ("the Sponsor"). The proceeds will be used to fund the forward purchase of newly constructed green certified apartments for rent in Warsaw. The project is considered under the Resilience and Livelihoods Framework, a EUR 2 billion package which was adopted by the EBRD after the Russian invasion in order to support Ukraine and other affected countries.
This project was approved in the context of the Bank's response to the Russian-led invasion of Ukrainian territory in February 2022. To avoid delays to the delivery of this project, the Bank's President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information. Details of this deviation, and the Bank's response to this situation, can be found on our website.
The operation will help to improve the housing situation in Poland, which was recently exacerbated by the war on Ukraine and the inflow of Ukrainian refugees to Poland. The proceeds from the planned financing will be utilised to finance in excess of 1,000 apartments for rent across four buildings.
ETI score: 65
The expected Transition Impact will contribute to the "Inclusive" and "Green" qualities.
Inclusive Quality - The project will broaden access to housing as vital infrastructure for sustaining human capital and livelihoods among host and refugee communities alike and will address structural imbalances within the Polish housing market, with a substantial undersupply of units further exacerbated by the war on Ukraine.
Green Quality - All four buildings will achieve Green Certification at BREEAM In Use "Very Good" level.
NREP NORDIC STRATEGIES FUND IV
NREP Nordic Strategies Fund IV
The Bank's Additionality stems from: innovative financing structure; risk mitigation, as the financing is provided during the times of high political and economical turbulence in the region caused by the war on Ukraine; and alignment with overall additionality terms of the Resilience and Livelihoods Framework aimed at supporting Ukraine and other affected countries.
ENVIRONMENTAL AND SOCIAL SUMMARY
Categorised B (2019 ESP). The key E&S risks and impacts associated with the construction of mixed residential and commercial units in Bemowo and Parkur are readily identifiable and can be mitigated through relevant environmental and social risk management.
The Environmental and Social due diligence (ESDD) was undertaken by ESD and included an assessment of the Company's capacity as well as their management systems and procedures. Information provided by the Company demonstrated compliance with national and EU environmental, health and safety and labour requirements, as well as capacity to manage the project in line with EBRD requirements. During the due diligence it was observed that the land used for construction was assessed for contamination and remedial actions were developed in line with Polish legislation requirements. Given that the relevant legal requirements in Poland are aligned with the EU standards, the risks related to the operation of these assets are limited. NREP has developed a series of policies e.g. anti-trafficking and slavery policy and supplier code of conduct, work environment and diversity policy, whistle-blower policy, and local representatives in Poland are trained to comply and implement these procedures.
An ESAP will be developed and agreed with the client prior to the Board. Specific actions include completing audits for life and fire safety of residential assets upon completion of new buildings and commitments to BREEAM certification. The Bank will monitor the Project's environmental and social performance through a review of an annual report and site visits as required.
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