Alfa Group International is about to issue its first Green Bond in 2021
Alfa Group International, one of the most established owner-developers in the CEE real estate market is planning to issue its first Green Bond. The bond receives strong anticipation from investors with proceeds from the approx. HUF 10 bn issue planned to be invested in green buildings. The Group acquires, develops, and manages commercial, industrial and residential real estate assets with a primary focus on Hungary and Slovakia.
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 Epstein, President of Alfa Group International.
The 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 logistic, retail parks and office segment with a total leasable area of nearly 100,000 square meters. Due to sustainable, long term policy and good re-investments over last 5 years, The Group secured 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 pipe line of new transactions is exceeding 100.000 sqm of leasable and sellable area, expanding substantially the activity of the Group.
About Alfa 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 are evidenced by its investmentsin green solutions in its real estate investments, eg. solar panels at Alfa Korzó retail center, 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 complete its debut green bond in Q3 2021.
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ALFA GROUP INTERNATIONAL IS COMMITTED TO CLIMATE ACTION
Based on our Code of Conduct, our company aims to contribute to the transition to a carbon neutral economy. The Alfa Group’s green bond issuance is assessed by KPMG against both the Climate Bond Standard (CBS) and the Green Bond Principles (GBP) requirements.
We equip our buildings with solar energy technology and are constantly improving our renewable energy systems.
For example: Our Alpha Corsa commercial centre has generated nearly 50% of its electricity needs from solar energy.
We use geothermal heating in our new property developments. The 640 apartments in the Ha11er residential complex in District IX and 29 apartments in the 2913 UpTown residential complex in District XIII are also being built with geothermal heating. It is also used in the urban development project in District XVIII.
In the renovation of our office buildings and logistics centres, insulation, doors and windows will be upgraded to save heating and cooling energy.