The EIB Group – made up of the European Investment Bank (EIB) and the European Investment Fund (EIF) – signed a new synthetic securitisation operation with Santander to provide financing for energy efficiency investments in the Spanish real estate sector.
The EIB’s commitment amounts to around €76 million, while the EIF has committed €45 million.
The full EIB Group investment is being executed in a single securitisation “optimally structured to give Santander capital relief on a portfolio of residential mortgages,” said the EIF.
Under the transaction, the EIB Group will provide a €121 million unfunded guarantee in a mezzanine tranche with the goal of enabling Santander to finance new energy efficiency investments for an amount equal to 1.34 times the size of the EIB Group guarantee.
The plan includes the construction of new near zero-emission buildings and the renovation of existing residential properties to meet sustainability standards.
“The operation will allow new green and sustainable mortgages to be granted to individuals investing in the renovation or construction of buildings with high energy efficiency standards that meet the eligibility conditions set by the EIB,” said the EIF.
“The projects financed by this operation will improve energy efficiency, reduce CO2 emissions and help mitigate climate change. The operation contributes to EIB Group priorities such as climate action, cohesion and developing the securitisation market in Europe.”