The EIB Group - comprising the European Investment Bank (EIB) and the European Investment Fund (EIF) - has signed a synthetic securitisation with Santander to support new investments in energy efficiency in Portugal worth 183 million. The operation will focus on the renovation of existing buildings to improve their energy efficiency, as well as the construction of new buildings meeting high energy efficiency standards. This deal builds on the success of a similar transaction signed between the parties in 2023.
As part of the new agreement, the EIB Group will provide Santander with EUR 91.6m of unfunded protection to an upper-mezzanine tranche, enabling the latter to grant 183m, i.e. double that figure, in new financing for green mortgages. The securitisation structure includes a lower-mezzanine tranche protected by private investors.
The beneficiaries of such support will be individuals and homeowners' associations, together with small and medium-sized enterprises (SMEs) and mid-caps. In addition, Santander is currently benefiting from advisory support under the EIB's Green Gateway facility with a focus on sourcing, assessing and reporting on green projects.
Projects supported by this operation will benefit from competitive financing terms, with a view to reducing CO emissions, improving air quality and encouraging climate resilience. Investments can be up to 25 million, with a maximum of 12.5 million in financing per project and a minimum term of two years.
"This partnership will help scale up financing for energy-efficient housing in Portugal, in line with our commitment as Europe's climate bank to do more in this area," highlighted EIB Director-General and Head of EU Lending and Advisory, Jean-Christophe Laloux.
Amílcar Lourenço, Santander's Managing Director in Portugal, emphasised this new partnership with the EIB Group, which represents the fundamental role that the bank wants to play with its customers - individuals and companies - in financing and providing the best solutions for their needs. In this specific case, with the added importance of promoting sustainable projects, thus taking another step towards the climate transition."
"This operation contributes to Portugal's energy transition through a commitment by Santander to finance new energy-efficiency investments in Portugal. It also contributes to a stronger securitisation market, in line with the objectives of the savings and investments union", said Alessandro Tappi, Chief Investment Officer at EIF.
Background information
About the EIB
The European Investment Bank (EIB) 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 European Investment Bank Group (EIB Group), comprising the European Investment Bank (EIB) and the European Investment Fund (EIF), recorded 2.1 billion of total financing underwritten in Portugal in 2023. Around half of this investment went to support small and medium-sized enterprises (SMEs) and mid-caps. In total, the EIB Group signed 88 billion in new financing in 2023.
About the EIF
The European Investment Fund (EIF) is part of the European Investment Bank (EIB) Group. Its central mission is to support Europe's micro, small and medium-sized enterprises (SMEs) by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments that specifically target this market segment. In this role, it contributes to the achievement of key EU policy goals such as competitiveness and growth, innovation and digitalisation, social impact, skills and human capital, climate action and environmental sustainability.
