BBVA and the European Investment Bank (EIB) are partnering to provide €185 million in financing for energy-efficient residential projects led by Spanish small and medium-sized enterprises (SMEs) and mid-caps. This collaboration aims to support sustainable construction initiatives, driving reductions in emissions and enhancing climate resilience in Spain.
The EIB is guaranteeing €93 million under InvestEU, a program designed to de-risk green investments and strengthen capital markets within the European Union. Through a synthetic securitisation backed by InvestEU, BBVA and the EIB Group are facilitating access to up to €185 million in funding for green housing projects across Spain.
This initiative underscores the commitment of the EIB Group to promote innovative financial instruments like securitisation, which play a crucial role in unlocking capital for environmentally friendly projects, reducing financial institutions’ risk exposure, and enhancing the EU’s capital markets union.
By focusing on supporting SMEs and mid-caps in constructing near-zero emissions residential buildings, this collaboration ensures that all funded projects will prioritize energy efficiency, CO₂ emissions reductions, and alignment with EU climate objectives. Importantly, a significant portion of the initiatives will be implemented in cohesion regions, amplifying the social and economic impact by targeting areas with below-average per capita income within the EU.
With a significant loan portfolio of €1.4 billion from BBVA to SMEs, and the EIB Group guaranteeing the €93 million mezzanine tranche, this partnership is structured to meet stringent criteria, including simplicity, transparency, and standardization. The deal’s structure incorporates synthetic excess spread and pro rata amortisation, with the flexibility to switch to a sequential model.
As the European Union intensifies its transition towards a greener economy, this collaboration exemplifies how public-private partnerships can drive substantial impact by mobilizing capital, mitigating risk associated with innovation, and advancing environmental, social, and governance (ESG) priorities.
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