EIB and Portugal sign first tranche of €1.34 billion framework loan to expand affordable and sustainable housing

EIB and Portugal sign first tranche of €1.34 billion framework loan to expand affordable and sustainable housing

(IN BRIEF) Portugal and the European Investment Bank have signed a €450 million tranche of a €1.34 billion loan to finance the construction and renovation of around 12,000 affordable rental homes across the country. The programme, part of Portugal’s National Affordable Housing Programme, is designed to provide long-term housing stock with below-market rents, built in line with energy efficiency and climate resilience standards. Co-financed with Portugal’s Recovery and Resilience Plan, the initiative strengthens social inclusion, territorial balance, and environmental sustainability. The EIB, which has supported Portugal for four decades, emphasized that affordable housing is central to social cohesion and climate action, while the Portuguese government hailed the agreement as a crucial step in addressing the nation’s housing needs.

(PRESS RELEASE) LUXEMBOURG, 19-Seo-2025 — /EuropaWire/ — The European Investment Bank (EIB) and the Republic of Portugal have signed the first €450 million tranche of a €1.34 billion framework loan to finance the construction and renovation of around 12,000 affordable housing units nationwide. The agreement, signed at the Palácio de São Bento in Lisbon, represents a decisive step in tackling Portugal’s housing shortage while promoting social inclusion, territorial cohesion, and environmental sustainability.

The overall financing package will support the development of a long-term housing stock with rents below market prices, ensuring greater access for families whose income limits their ability to secure adequate accommodation. All new and renovated housing will comply with strict energy efficiency and climate resilience standards, contributing to both national and EU environmental objectives.

“Providing a solution to housing challenges is an absolute priority for this Government, which counts on the EIB as a key partner in this area that is so important for the country,” said Miguel Pinto Luz, Minister for Infrastructure and Housing. “With this €1.34 billion in financing, we have another tool at our disposal for public housing in Portugal. This means approximately 12,000 more affordable homes, at below market prices, which we want to make available to families in our country as quickly as possible.”

Minister of State and Finance Joaquim Miranda Sarmento added: “Today a very important step has been taken in financing the construction and renovation of public housing in Portugal, to which the Government has been committed since the beginning of its term, with the support of entities such as the EIB, which play a vital role in this process. I would also like to commend the extraordinary role that the EIB has played in Portugal’s development over the last 40 years, financing and supporting hundreds of public and private projects.”

Ioannis Tsakiris, Vice President of the EIB, underlined the broader impact of the initiative: “At the European Investment Bank, we believe that everyone should have access to a safe, sustainable, and affordable home. Affordable housing is essential not only for social cohesion but also for economic competitiveness, climate resilience, and sustainable urban development. With this new financing agreement, we are strengthening our strategic partnership with the Government of Portugal to deliver thousands of homes, expand access to affordable housing, and support Portugal’s efforts to build a more inclusive economy.”

The programme forms part of Portugal’s €1.8 billion National Affordable Housing Programme, overseen by the Instituto da Habitação e da Reabilitação Urbana (IHRU). It will be co-financed through Portugal’s Recovery and Resilience Plan (RRF), with combined EU/RRF and EIB contributions covering about 90% of the total cost, and the EIB financing representing 75%.

This housing initiative also aligns with two of the EIB Group’s cross-cutting policy goals: fostering social and territorial cohesion and advancing climate action. It is supported by the EIB’s wider Housing Action Plan, which focuses on sustainable construction techniques, the renovation of aging housing stock, and the delivery of new affordable homes across Europe

Background information  

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. The EIB finances investments in eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and the bioeconomy, social infrastructure, a stronger Europe in a more peaceful and prosperous world and Europe’s 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.

Approximately half of the EIB’s financing within the EU targets cohesion regions, where per-capita income is below the EU average, while almost 60% of annual EIB Group investments support climate action and environmental sustainability.

In Portugal, in 2024, the EIB Group signed new financing worth €2.1 billion for high-impact projects contributing to the country’s green and digital transition, economic growth, competitiveness and better services for their people.

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

Media Contact:

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

Press Office

press@eib.org
+352 43791

SOURCE: European Investment Bank