EIB Grants SEK €225 million Loan to Malmö for Sustainable Housing Project

EIB Grants SEK €225 million Loan to Malmö for Sustainable Housing Project

(IN BRIEF) The European Investment Bank (EIB) has granted a SEK 2.6 billion loan to the City of Malmö to finance the construction of over 1,500 energy-efficient apartments. This loan furthers the city’s commitment to sustainability and meets EU climate goals, with the new residential buildings expected to be completed by 2029. The project also marks the EIB’s seventh loan to Malmö since 1995, reinforcing a longstanding partnership and contributing to the city’s rapid growth and environmental progress.

(PRESS RELEASE) LUXEMBOURG, 21-Jan-2025 — /EuropaWire/ — The European Investment Bank (EIB) has approved a loan of SEK 2.6 billion (approximately €225 million) to the Swedish city of Malmö to support the construction of 13 energy-efficient residential buildings. The project, aimed at meeting EU climate goals and advancing Sweden’s energy-efficiency objectives, will result in the addition of over 1,500 new apartments to the city’s housing market.

The funding will be used by Malmö’s municipal housing company, MKB Fastighets AB, to build 1,547 apartments in phases, with the final homes expected to be completed by 2029. These new residences will adhere to energy efficiency standards that surpass Sweden’s national benchmarks, helping to further the country’s commitment to sustainable urban development.

EIB Vice-President Thomas Östros remarked, “This investment highlights our dedication to supporting sustainable urbanization across Europe. By financing projects like this one, we are helping cities such as Malmö, often referred to as the City of Parks, make significant strides in combating climate change, all while enhancing the quality of life for local residents.”

Malmö, located in southwestern Sweden, is the nation’s third-largest city, with a population of around 360,000 that is growing at a faster rate than the national average. The city plays a crucial role in the region’s economy, benefiting from its connection to Denmark through the Öresund Bridge and its collaboration with Copenhagen through a shared shipping port.

The residential buildings will be constructed across various locations within Malmö, featuring apartments primarily with 1-4 rooms. MKB Fastighets AB CEO Marie Thelander Dellhag emphasized the importance of minimizing climate impact in new housing projects: “The EIB’s financing confirms that our projects meet the high standards needed to achieve our climate goals. Efficient energy use and sustainability are fundamental to making MKB and Malmö a greener, more sustainable city.”

The loan is the EIB’s seventh to the City of Malmö, further strengthening a partnership that dates back to 1995. The funding is fully aligned with EU legislation on the energy performance of buildings and energy efficiency, reinforcing Malmö’s commitment to environmentally conscious development.

City of Malmö Head of Treasury, Claes Ramel, added, “The EIB loan is a vital tool in fulfilling the growing city’s funding requirements. It strengthens Malmö’s financial platform and highlights the high environmental standards of the investments. This significant loan further increases the available funding for Malmö’s sustainable growth.”

Background information

EIB

The EIB finances sound 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.

All projects financed by the EIB Group are in line with the Paris Climate Accord. 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.

The EIB Group signed nearly €3 billion in financing for 32 projects in Sweden in 2023, a record high, with more than three quarters of these commitments channelled to climate action and environmental sustainability investments. For more details about our projects in Sweden and their impact, please visit the country page for Sweden.

City of Malmö

Malmö is Sweden’s third-largest city—a young, global, and growing urban hub. The population has increased steadily over the past 30 years, and today, over 360,000 people call Malmö home. Half of Malmö’s residents are under 35 years old, and its inhabitants have roots in over 180 countries.

The City of Malmö is one of the frontrunners in Europe’s climate transition, leading the way to climate-neutral cities in Europe. Malmö has also signed the Climate City Contract 2030, where 48 Swedish cities, representing more than half of Sweden’s population, are joining forces for the climate transition from local to global levels. This initiative serves as a tool to enable investments in climate and sustainability measures in cities.

The City of Malmö’s organization employs approximately 29,000 people across about 400 different professions. These dedicated employees provide daily services to Malmö’s residents, businesses, associations, and visitors.

Media Contact:

Thomas Eriksson
t.eriksson@ext.eib.org

Press Office

press@eib.org
+352 43791

SOURCE: European Investment Bank