EIF and EIB Group Launch €94 Million Green Financing Initiative for Italian Households

EIF and EIB Group Launch €94 Million Green Financing Initiative for Italian Households

(IN BRIEF) The European Investment Fund (EIF) has launched a synthetic securitisation operation with a €94 million mezzanine guarantee, supported by a counter-guarantee from the European Investment Bank (EIB). This initiative, focused on green projects, is designed to help Italian families and households finance energy-efficient and renewable energy solutions. Through this partnership with Findomestic, the EIF enables up to €250 million in new loans for sustainable home improvements. This collaboration continues the EIB Group and BNP Paribas Group’s ongoing efforts in Italy, following several similar initiatives, including a €400 million agreement in 2024.

(PRESS RELEASE) LUXEMBOURG, 10-Jan-2025 — /EuropaWire/ — The European Investment Fund (EIF) has launched a synthetic securitisation operation with a €94 million mezzanine guarantee, marking a significant step in supporting green initiatives for Italian families and households. This new operation, which is the first of its kind, also includes a counter-guarantee from the European Investment Bank (EIB). The EIB Group is providing full green support, with the aim of aiding families and households in Italy with energy-efficient and renewable energy production projects for their homes.

This agreement continues the fruitful collaboration between the EIB Group and BNP Paribas Group, which has seen nearly €400 million in operations over the past five years in Italy. The synthetic securitisation transaction, which involves no asset sales, focuses on an €855 million portfolio of retail loans originated by Findomestic. Through this deal, the EIF is issuing a guarantee on the mezzanine tranche, while the EIB provides a counter-guarantee. This arrangement frees up capital for Findomestic, enabling it to offer new loans aligned with environmental sustainability criteria, with a potential value of up to €250 million.

The partnership marks the fourth initiative of 2024 between the EIB Group and BNP Paribas Group in Italy, further solidifying their long-standing relationship. A notable earlier agreement between the two in July allocated €400 million to boost liquidity for companies, including a 25% green component.

Gelsomina Vigliotti, Vice-President of the EIB, emphasized the importance of this initiative, saying, “For the first time in Italy, the EIB Group is directly supporting households by lowering financing costs for energy-efficient projects and solar energy production. This initiative aims to encourage energy transition and strengthen the bond between the EIB, Europe, and Italian citizens.”

Marco Tarantola, CEO and General Manager of Findomestic Banca, highlighted the unique nature of this operation, stating, “We’re excited to support families in making energy-efficient purchases, thus contributing to environmental sustainability and the ecological transition.”

Marjut Falkstedt, EIF CEO, added, “This collaboration with Findomestic opens up new possibilities for Italian families to invest in sustainable solutions, making financing more accessible and fostering innovation in energy efficiency and renewable energy at the household level.”

Background information

The European Investment Bank (ElB) 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 EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs. In the last five years, the EIB Group has provided more than €58 billion in financing for projects in Italy. All projects financed by the EIB Group are in line with the Paris Climate Agreement. The EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment. Around half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower.

Findomestic Banca serves over 3 million customers, offering lending, insurance, savings and daily banking solutions thanks to dedicated current accounts. Findomestic is active throughout Italy, motivated by the principles of social responsibility, and promoting a sustainable and responsible approach to lending in order to develop a solid long-term relationship with customers, partners and all stakeholders. Findomestic is wholly owned by BNP Paribas Personal Finance and is part of the BNP Paribas Group, which is active in more than 70 countries with over 189 000 employees, of whom over 146 000 are based in Europe.

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SOURCE: European Investment Bank