EIB Group Invests €90M to Unlock €185M for Sustainable Housing in Spain, Bolstering Green Finance and EU Market Integration

EIB Group Invests €90M to Unlock €185M for Sustainable Housing in Spain, Bolstering Green Finance and EU Market Integration

(IN BRIEF) The EIB Group, comprising the European Investment Bank (EIB) and the European Investment Fund (EIF), has invested over €90 million in a synthetic securitisation operation with BBVA, aimed at financing sustainable housing projects in Spain. Backed by InvestEU, this operation is set to mobilise around €185 million in capital, specifically targeting the construction of near-zero emissions residential buildings by SMEs and mid-caps in the Spanish real estate sector. The initiative, designed to meet STS (simple, transparent, and standardised) criteria, reduces financial risk for sponsoring institutions through an innovative securitisation structure that includes a synthetic excess spread mechanism and pro rata amortisation, potentially shifting to sequential amortisation. With a loan portfolio exceeding €1.4 billion, BBVA will hold the senior and junior tranches, while the EIB Group guarantees the mezzanine tranche of €93 million. This investment not only supports sustainable housing and climate action but also reinforces the EU capital markets union by unlocking new financing avenues for green projects, especially in regions with lower incomes. Overall, this operation exemplifies the EIB Group’s strategic priorities in promoting climate action, sustainable development, and market integration across the European Union.

(PRESS RELEASE) LUXEMBOURG, 3-Apr-2025 — /EuropaWire/ — The EIB Group has committed more than €90 million to a BBVA asset-backed securitisation operation, a strategic investment that will enable BBVA to unlock approximately €185 million in financing dedicated to sustainable housing projects in Spain. This initiative, backed by InvestEU—a European Union program designed to mobilise over €372 billion in investment by 2027—combines the efforts of the European Investment Bank (EIB) and the European Investment Fund (EIF). Together, they have signed a new €93 million synthetic securitisation agreement with BBVA, focusing exclusively on 100% green projects. This capital injection will empower small and medium enterprises (SMEs) and mid-caps in Spain’s real estate sector to build residential buildings that produce near-zero emissions.

Guaranteed by InvestEU, the operation is structured to facilitate access to favorable financing terms for sustainable housing projects, particularly benefiting those in cohesion regions where per capita income is below the EU average. The projects funded through this initiative are designed to enhance energy efficiency, lower CO₂ emissions, and contribute to climate change mitigation. Additionally, the deal showcases the EIB Group’s commitment to developing innovative financial instruments such as securitisation, which not only unlocks capital for green projects but also helps reduce the risk assumed by the sponsoring financial institutions, ultimately strengthening the EU capital markets union.

This agreement supports the strategic priorities of the EIB Group, including climate action, affordable and sustainable housing, regional cohesion, and the integration of capital markets. The securitisation is backed by a portfolio of over €1.4 billion in loans to SMEs, with BBVA retaining both the senior and junior tranches, while the EIB Group guarantees the mezzanine tranche of €93 million. The structure adheres to STS criteria (simple, transparent, and standardised) and features a synthetic excess spread mechanism along with pro rata amortisation, which may be adjusted to a sequential approach.

Background information  

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, high-impact investments outside the European Union, and the capital markets union.

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.

All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.

Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers. Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average.

High-quality, up-to-date photos of our headquarters for media use are available here.

About InvestEU

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. It also helps mobilise private investment for EU policy priorities, such as the European Green Deal and the digital transition. InvestEU brings together under one roof the multitude of EU financial instruments available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that invest in projects, leveraging on the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increasing their risk-bearing capacity and mobilising at least €372 billion in additional investment.

About BBVA

BBVA is a global financial services group founded in 1857. The bank is present in more than 25 countries, has a strong leadership position in the Spanish market, is the largest financial institution in Mexico and it has leading franchises in South America and Turkey.

BBVA contributes with its activity to the progress and welfare of all its stakeholders: shareholders, clients, employees, providers and society in general. In this regard, BBVA supports families, entrepreneurs and companies in their plans, and helps them to take advantage of the opportunities provided by innovation and technology.  Likewise, BBVA offers its customers a unique value proposition, leveraged on technology and data, helping them improve their financial health with personalized information on financial decision-making.

Media Contact:

Maite Cordero
m.corderomunoz@eib.org
+34 606 66 82 62

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SOURCE: European Investment Bank