News Article Alfa Group green bond Hungary investment issue sustainability
by Property Forum | Investment

Hungary-based Alfa Group’s first Green Bond receives strong anticipation from investors with proceeds from the approx. HUF 10 billion issue planned to be invested in green buildings.

The bond will be the first issuance under the newly established Green Bond Framework by Alfa Group. Proceeds from the issue will be used in accordance with the Group’s Green Bond Framework for investments in the development and expansion of the Group’s portfolio.

The Group invests in real estate emphasising renewable energy and energy efficiency solutions with the objective to mitigate climate change globally by reducing greenhouse gas emissions. The Group’s auditor KPMG evaluated the current status of Alfa Group’s portfolio.

KPMG as a third-party verifier has also issued a limited pre-issuance assurance report for the Green Bond Framework which form the basis of the green bond issuance in terms of the requirements of the ICMA Green Bond Principles.

“With the issuance of Alfa Green Bond, we are providing investors the opportunity to support our objective to mitigate climate change globally by reducing greenhouse gas emissions through our renewable and circular solutions,” said Ohad Epschtein, President of Alfa Group International.

Alfa Group has been active in the Hungarian and Slovakian real estate market for more than 20 years. The Group’s current portfolio of yielding assets is well-diversified among city logistics, retail parks and office segments with a total leasable area of nearly 100,000 square meters.

Due to sustainable, long term policy and good re-investments over the last 5 years, The Group secured a land bank and is now mainly concentrating on new developments: city logistic and city residential projects, including strong efforts over opening the new activity of residential for lease.

The pipeline of new transactions is exceeding 55,000 sqm of leasable and sellable area, expanding substantially the activity of the Group.

Alfa Group established its first entity in Hungary in November 1995. The Group has a highly successful business model and operates over 15 standing investments as of today being best in class in terms of energy efficiency. In the upcoming 5 years, the development pipeline focuses on urban industrial and residential investments in Budapest.

The Group’s long-term commitment to sustainability is evidenced by its investments in green solutions in its real estate investments, eg. solar panels at Korzó retail centre, producing 30% of its energy needs by renewable energy, or at Alfa HUB offices in Budapest involving tenants in the sustainable operations. The Group is looking forward to completing its debut green bond in Q3 2021.