Baku, Azerbaijan, April 2. The European
Investment Bank (EIB) Group, comprising the EIB and the European
Investment Fund (EIF), has signed a 93 million euro synthetic
securitisation deal with BBVA, focused on financing 100% green
projects, Trend
reports.
This deal will enable BBVA to mobilise up to 185 million euros
for the construction of near-zero emissions residential buildings
by small and medium-sized enterprises (SMEs) and mid-caps in
Spain’s real estate sector.
Guaranteed by InvestEU, the EU programme aimed at mobilising
both public and private investments, the transaction will provide
SMEs and mid-caps working on sustainable housing projects with
easier access to financing on favorable terms. This support is
particularly aimed at regions with lower-than-average income
levels.
The funded projects will focus on improving energy efficiency,
reducing CO2 emissions, and helping to combat climate change. Many
of these projects are expected to be implemented in EU cohesion
regions.
The operation highlights the EIB Group’s commitment to promoting
new financial instruments like securitisation, which help unlock
capital for green initiatives, reduce risks for financial
institutions, and contribute to the EU’s capital markets union.
BBVA’s portfolio, valued at over 1.4 billion euros in loans to
SMEs, will include the senior and junior tranches, while the EIB
Group guarantees the 93 million euro mezzanine tranche. The
structure of the deal adheres to STS (Simple, Transparent, and
Standardised) criteria and includes mechanisms to ensure pro-rata
amortisation.