South East Europe’s energy transition is not being financed by bank debt alone, according to the region’s capital-market outlook. The investment requirement is described as too large for a single funding channel, with a diverse asset base and a more sophisticated market. Equity capital markets, green bonds, corporate debt, development finance institution (DFI) finance and project-finance structures are cited as needed.
The regional capital-market landscape is uneven across countries. Greece and Romania are described as having the deepest energy capital-market stories, while Bulgaria, Croatia and Slovenia have institutional capital but fewer large listed energy champions. The Western Balkans are described as remaining more dependent on DFIs, local banks, strategic investors and state-backed utilities.
Romania’s Hidroelectrica IPO as a benchmark for public equity
Romania’s Hidroelectrica initial public offering remains the defining SEE capital-market transaction. The listing was for €1.9 billion, described as the largest IPO on the Bucharest Stock Exchange, the third-largest in Central and Eastern Europe at the time, and the largest European IPO of 2023.
The transaction is presented as showing that large, cash-generative and strategically important SEE energy assets can attract international institutional capital. Hidroelectrica is described as a mature hydropower producer with scale, strategic relevance and strong profitability rather than a speculative green story.
At the same time, Hidroelectrica is described as an exception in the region’s renewables market. Most renewable platforms in SEE are said to be more likely to exit through trade sales, infrastructure funds, asset rotation or strategic minority stakes than through IPOs. Public equity markets are described as better able to absorb large mature champions than fragmented development pipelines.
Green senior notes and corporate bond issuance in Greece
Corporate bond markets are described as becoming more relevant, particularly in Greece. In October 2025, PPC priced €775 million of 4.25% Green Senior Notes due 2030.
The notes transaction is presented as illustrating how large regional utilities can use green debt markets to refinance liabilities and fund eligible green projects. Corporate-level green financing is described as an option when investors accept both the credit story and the green framework. The approach is also linked to creating a bridge between corporate transformation and project deployment.
Banks and DFI support across renewables projects
Banks are identified as another key capital-market channel for renewables finance in the region. Greek banks, Romanian banks and groups including Erste, UniCredit, Raiffeisen, Intesa Sanpaolo, OTP and Piraeus are cited as central to renewable finance.
The role of these banks is described as extending beyond direct project lending to include support for green bond markets, corporate refinancing and DFI-led syndications. DFIs are described as playing a backbone role in many transactions through risk reduction and mobilising commercial banks alongside regulatory frameworks such as auctions and CfDs.
An example cited is an EBRD loan of €175 million to PPC for around 400 MW of wind and solar projects across Bulgaria, Greece and Romania. The example is also linked to InvestEU support enabling longer-term funding.
EIB climate finance in the Western Balkans
In the Western Balkans, the EIB is described as remaining a major source of climate and infrastructure finance. The EIB Group invested €822 million in the Western Balkans in 2025.
The EIB Group also signed a €103 million loan for the 132 MW Poklečani wind farm in Bosnia and Herzegovina. This is cited alongside broader DFI involvement in structuring renewables finance across multiple layers of risk support.
CfDs, auction-backed revenues and typical bankable capital stacks
The capital stack for bankable SEE renewables is described as typically including sponsor equity, commercial bank debt and DFI participation. It also includes auction-backed or contracted revenue, with EU grant or guarantee support sometimes present. In more advanced markets, corporate PPAs and merchant components are described as becoming more accepted.
Lenders are said to prefer clearer revenue support in less mature markets where contracting structures are less developed. Romania’s CfD scheme is highlighted as turning renewable projects into more financeable assets under that framework.
EBRD says Romania’s CfD scheme has awarded 4.2 GW of solar and wind capacity across two auctions, exceeding a national target of 3.5 GW. The target is referenced under Romania’s Recovery and Resilience Plan.
Project structuring requirements for investors, lenders and DFIs
The issue for SEE capital markets is framed around whether projects are structured so that capital can absorb them rather than whether money exists. Investors are described as seeking visibility while banks seek bankability; bondholders seek credit discipline; DFIs seek transition impact; strategic buyers seek platforms; and governments seek capacity with lower consumer risk.
The strongest projects are described as needing to satisfy several of these requirements at once within financing structures that align with investor expectations. South East Europe’s energy capital markets are characterised as still developing while moving toward greater use of green bonds by mature utilities and listing by large national champions.
The next stage is described as deeper local capital participation along with more green-bond issuance, more storage finance and more hybrid corporate/project structures. The region is said not to lack capital but to lack enough de-risked, grid-secured and well-structured assets ready for that capital.
