EIB and EIF Collaborate with Inbank and European Commission’s InvestEU to Support Green Transition in Poland

EIB and EIF Collaborate with Inbank and European Commission’s InvestEU to Support Green Transition in Poland

(IN BRIEF) The European Investment Bank Group (EIBG), in collaboration with Inbank and the European Commission’s InvestEU, has launched its first fully green synthetic securitization in Poland. The agreement enables Inbank to provide PLN 701 million (over €160 million) in financing over the next three years for private individuals to install solar panels and heat pumps. Backed by EIF guarantees and InvestEU support, this initiative reduces CO2 emissions, aligns with EU climate goals, and supports REPowerEU’s energy transition targets. Inbank’s Chairman, Priit Põldoja, highlighted the deal’s role in strengthening the company’s green financing operations while advancing sustainability and innovation.

(PRESS RELEASE) LUXEMBOURG, 25-Nov-2024 — /EuropaWire/ — The European Investment Bank Group (EIBG) has entered into its first fully green InvestEU-backed synthetic securitization agreement in Poland, in partnership with Inbank, an Estonian fintech company with an EU banking license. This pioneering transaction, also Inbank’s first securitization initiative, is set to unlock PLN 701 million (over €160 million) in financing for private individuals in Poland to install solar panels and heat pumps over the next three years.

EIB Vice-President Teresa Czerwińska highlighted the significance of the deal:
“This agreement with Inbank underscores the critical role of private individuals in the energy transition. As the EU’s climate bank, the EIB is committed to addressing various aspects of the green transition. This collaboration enables us to extend green financing directly to consumers, advancing our climate objectives in innovative ways.”

Key Features of the Agreement:

• EIF Guarantees: The European Investment Fund (EIF) will provide protection for the senior tranche (the least risky portion) worth over PLN 549 million, half of which is counter-guaranteed by the EIB.
• Riskier Tranches: The EIF will also guarantee PLN 76 million of the mezzanine tranche, backed by the European Commission’s InvestEU programme.
• Junior Tranche: The riskiest portion, worth PLN 10 million, will remain with Inbank.
• Innovative Structure: The securitization features synthetic excess spread and pro-rata amortization for the senior and mezzanine tranches, contingent on performance triggers.

Marjut Falkstedt, Chief Executive of the EIF, emphasized the multifaceted benefits of the collaboration:
“This agreement injects substantial funding into Poland’s green economy, directly benefiting individuals. It is also a testament to the strength of the partnership between the EIB, EIF, and the European Commission, leveraging InvestEU’s innovative financial tools to propel the green transition.”

Supporting Climate Goals and Green Financing

The initiative focuses on making solar panels and heat pumps more accessible to Polish households, aligning with EU climate goals and REPowerEU objectives to reduce carbon emissions, improve air quality, and diversify energy sources. Katarzyna Smyk, Head of the European Commission Representation in Poland, highlighted the project’s dual value in advancing green investments and fostering EU-wide collaboration.

Inbank’s Chairman of the Management Board, Priit Põldoja, described the transaction as transformative for the company:
“This securitization is a cornerstone of our long-term strategy, enabling us to expand our operations in green financing. It strengthens our capital position and allows us to offer more competitive terms to customers, reinforcing our commitment to sustainability and innovation. We are honored to lead EIBG’s first fully green securitization in Poland.”

Advancing EU Cohesion and Green Energy Solutions

This transaction also contributes to the EU’s Capital Markets Union by fostering innovative financial instruments. By transferring part of the credit risk associated with its loan portfolio, Inbank can scale its green lending operations while keeping the portfolio on its balance sheet through this synthetic securitization.

This groundbreaking collaboration exemplifies how innovative financial strategies and partnerships can drive the green transition, directly benefiting consumers and supporting broader climate objectives across Europe.

Background information

The EIB is a institution of the European Union providing long-term financing for sound projects that pursue the bloc’s shared priorities. The EIB’s shareholders are the 27 member states. Its involvement increases economic competitiveness, spurs innovation, promotes sustainable development, enhances social and territorial cohesion, and supports a swift and fair transition to climate neutrality. The EIF is part of the EIB Group. It supports Europe’s SMEs by improving their access to finance through a wide range of selected financial intermediaries, such as banks, guarantee and leasing companies, micro-credit providers and private equity funds.

In 2023, the EIB Group granted a total of €88 billion in new financing to more than 900 projects, of which €49 billion was earmarked for green investments. These funds are expected to support total investment of €320 billion, help 400 000 companies and sustain 5.4 million jobs. In Poland, more than half of the €5.1 billion granted by the EIB Group in 2023 went to climate-friendly projects.

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery and growth. It helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments, making funding for investment projects in Europe simpler, more efficient and flexible. InvestEU is underpinned by an EU budget guarantee of €26.2 billion and meant to mobilise at least €372 billion in additional investment.

Inbank is a financial technology company with an EU banking license that connects merchants, consumers and financial institutions on its next generation embedded finance platform. Partnering with 6,200 merchants, Inbank has 881,000+ active contracts and collects deposits across 7 markets in Europe. Inbank bonds are listed on the Nasdaq Tallinn Stock Exchange.

Media Contact:

Gabriela Baczyńska
g.baczynska@eib.org
+352 4379-83852

Press Office

press@eib.org
+352 43791

SOURCE: European Investment Bank