EIB Loans €22 Million to Malta for Affordable Housing Construction

EIB Loans €22 Million to Malta for Affordable Housing Construction

(IN BRIEF) The European Investment Bank (EIB) has granted a €22 million loan to Malita Investments plc, in collaboration with the Government of Malta, to address housing shortages in the country. This funding, along with a previous agreement, will support the construction of 267 units in Luqa, contributing to the development of nearly 750 social housing units across Malta. The initiative aims not only to alleviate the pressing need for affordable housing but also to promote sustainable and energy-efficient communities. Minister for Social and Affordable Accommodation Roderick Galdes emphasized the importance of this partnership in advancing Malta’s mission to provide quality housing, while EIB Vice-President Gelsomina Vigliotti underscored the bank’s commitment to supporting social development and inclusive growth in Europe. Chair of Malita Investments plc Marlene Mizzi expressed gratitude for the EIB’s confidence and highlighted the positive impact the project will have on improving living standards and meeting the demand for affordable accommodation.

(PRESS RELEASE) LUXEMBOURG, 16-Mar-2024 — /EuropaWire/ — The European Investment Bank (EIB) is helping Malta step up the fight against housing shortages by lending €22 million to Malita Investments plc, a listed company on the Malta Stock Exchange with an 80% shareholding owned by the Government of Malta and 20% by private shareholders.

Together with a 2017 agreement between the EIB and Malita Investments, the new loan will facilitate the construction of 267 units in Luqa out of nearly 750 social housing units currently being built in Malta. The financing addresses a pressing need for affordable housing in the area.

The new homes will feature the highest energy-efficiency standards, with the project aiming to foster resilient and socially mixed communities. This approach not only meets the immediate housing needs of low- and middle-income residents but also contributes to a more balanced local residential market.

Minister for Social and Affordable Accommodation Roderick Galdes said that this is an important step forward in the country’s mission to provide high-quality, affordable housing to those in need. “With this partnership, we’re not just building homes; we’re creating sustainable and energy-efficient communities. We are setting a new standard for living spaces that are not only environmentally responsible but also foster social integration and community resilience.”

EIB Vice-President Gelsomina Vigliotti said: “This investment underscores the EIB’s commitment to supporting sustainable development and addressing critical social challenges across Europe. By providing financial support for the construction of social housing units in Malta, we aim to foster inclusive growth, enhance living standards and contribute to the overall well-being of the local population.”

Chair of Malita Investments plc Marlene Mizzi expressed her satisfaction at the confidence which the EIB has shown in the company. “We are pleased to be able to help improve the quality of life of so many people by constructing high-quality, energy saving accommodation and to relieve the great demand there is for such accommodation. This is also thanks to the financial support of the EIB.”

The EIB in Malta

The EIB Group, comprising the European Investment Bank (EIB) and the European Investment Fund (EIF), has been a significant supporter of the Maltese economy since 1979, providing close to €1 billion in funding. Our support extends to various areas, including facilitating access to finance for small and medium-sized enterprises (SMEs), investing in 5G mobile infrastructure and financing the construction of social housing units. Furthermore, we have been involved in financing flagship infrastructure projects such as a new parliament building, an open-air theatre and the restoration of Valletta’s City Gate – a UNESCO World Heritage site. Examples from 2023 include €30 million in financing to the Malta Development Bank (MDB) to boost the green transition of SMEs and public-sector entities as well as an EIF operation with Malta’s Ministry of European Funds and Land – backed by InvestEU – to make €16.5 million available to small businesses to foster innovation and job creation in the country.

Background information

European Investment Bank (EIB)

The EIB finances projects in four priority areas: infrastructure, innovation, climate and environment, and small and medium-sized enterprises (SMEs).

Malita Investments

The corporate vision of Malita Investments plc, which operates as an investment holding company, is primarily the acquisition, development and management of immovable property, the leveraging of revenue streams arising therefrom and the reinvestment of undistributed profits in national and/or strategic real estate projects as well as in commercial property opportunities.

Media Contact:

Lorenzo Squintani
l.squintani@eib.org
+352437982528

Press Office
press@eib.org
+352 43791

SOURCE: European Investment Bank