EIB Group and BBVA Launch €93 Million Green Financing Initiative for Sustainable Housing in Spain

EIB Group and BBVA partner on €93 million synthetic securitisation deal to fund green housing initiatives in Spain, backed by InvestEU

The EIB Group, comprising the EIB and the European Investment Fund (EIF), has signed a new synthetic securitisation deal worth €93 million with BBVA that is entirely devoted to the funding of green initiatives. BBVA will mobilise around €185 million through this deal to finance the development of near-zero emission housing buildings by small and medium-sized enterprises (SMEs) and mid-cap companies in Spain's real estate sector.

Backed by InvestEU for Enhanced Financial Access

This agreement benefits from backing by InvestEU, the European Union’s programme designed to stimulate public and private investments. Thanks to this support, SMEs and mid-cap developers focusing on sustainable housing will gain improved access to financing under more favourable conditions than typically available in the market.

The projects within this program are designed to initiate major energy-saving improvements and reduce carbon emissions, which will have a direct effect on reducing climate change. Most of the projects are likely to occur in EU cohesion regions, regions of lower-than-average incomes, thereby contributing both environmental and economic sustainability.

Catalysing Capital Through Innovative Financial Instruments

This operation highlights the EIB Group's role in leading-edge financial instruments such as securitisation, which facilitate access to capital for green projects. By shifting the financial risk to partner banks, these instruments also play a crucial role in constructing Europe's capital markets union.

The partnership with BBVA aligns with the EIB Group's priority areas, including supporting climate action, improving access to sustainable and affordable housing, promoting regional cohesion, and enhancing capital market development.

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Securitisation Details and Structure

The securitisation deal covers a loan portfolio exceeding €1.4 billion, primarily targeting Spanish SMEs. BBVA will hold the senior and junior tranches, and the EIB Group will issue a guarantee of €93 million on the mezzanine tranche. The structure is based on the EU's Simple, Transparent, and Standardised (STS) requirements and also includes options like a synthetic excess spread mechanism and pro rata amortisation, with the ability to change to sequential amortisation if required.