EIB Group and Santander Partner on €183 Million Green Financing Boost for Energy Efficiency in Portugal

EIB Group and Santander Partner on €183 Million Green Financing Boost for Energy Efficiency in Portugal

(IN BRIEF) The European Investment Bank Group (EIB Group), in partnership with Santander, has launched a €183 million initiative to boost energy efficiency investments in Portugal. The agreement includes €91.6 million in EIB Group support for Santander’s upper-mezzanine tranche, enabling the bank to provide green mortgages and financing for energy-efficient building renovations and new constructions. Beneficiaries include homeowners, associations, and SMEs. This initiative aligns with Portugal’s energy transition goals, offering competitive financing terms to reduce CO₂ emissions and enhance climate resilience, while also strengthening the EU’s securitisation market.

(PRESS RELEASE) LUXEMBOURG, 28-Nov-2024 — /EuropaWire/ — The European Investment Bank Group (EIB Group), which includes the European Investment Bank (EIB) and the European Investment Fund (EIF), has partnered with Santander to drive €183 million in energy efficiency investments in Portugal. This initiative will focus on upgrading existing buildings to improve energy performance and constructing new buildings that adhere to stringent energy efficiency standards. The agreement builds on a successful collaboration between the parties in 2023.

Under the arrangement, the EIB Group will provide €91.6 million in unfunded protection to Santander’s upper-mezzanine tranche, allowing Santander to offer €183 million in green financing, including loans for energy-efficient mortgages. The securitisation also involves a lower-mezzanine tranche backed by private investors. Beneficiaries include individual homeowners, homeowners’ associations, and small and medium-sized enterprises (SMEs) as well as mid-sized companies.

This financing will enable projects aimed at reducing CO₂ emissions, improving air quality, and fostering climate resilience. Eligible investments can be up to €25 million, with financing of up to €12.5 million per project and a minimum loan term of two years. Santander also benefits from the EIB’s Green Gateway advisory support to ensure effective sourcing, evaluation, and reporting on green projects.

EIB Director-General Jean-Christophe Laloux highlighted the initiative’s alignment with the EIB’s mission as Europe’s climate bank, stating, “This partnership will expand financing for energy-efficient housing in Portugal, furthering our commitment to climate action.”

Amílcar Lourenço, Managing Director of Santander Portugal, emphasized the bank’s role in financing sustainable solutions for individuals and businesses, noting, “This partnership is a crucial step in promoting projects that support the climate transition.”

Echoing the importance of the initiative, Alessandro Tappi, Chief Investment Officer at EIF, added, “This operation not only supports Portugal’s energy transition but also strengthens the securitisation market, aligning with the goals of the EU savings and investments union.”

This collaboration reflects the growing role of green finance in fostering energy efficiency and sustainability across Europe, contributing to Portugal’s efforts to achieve its climate goals.

Background information

About the EIB

The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The European Investment Bank Group (EIB Group), comprising the European Investment Bank (EIB) and the European Investment Fund (EIF), recorded €2.1 billion of total financing underwritten in Portugal in 2023. Around half of this investment went to support small and medium-sized enterprises (SMEs) and mid-caps. In total, the EIB Group signed €88 billion in new financing in 2023.

About the EIF

The European Investment Fund (EIF) is part of the European Investment Bank (EIB) Group. Its central mission is to support Europe’s micro, small and medium-sized enterprises (SMEs) by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments that specifically target this market segment. In this role, it contributes to the achievement of key EU policy goals such as competitiveness and growth, innovation and digitalisation, social impact, skills and human capital, climate action and environmental sustainability.

Media Contacts:

Maite Cordero
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+34 606 66 82 62

André Milheiro
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+352 4379 – 73823

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SOURCE: European Investment Bank