Investment Plan for Europe - Vonovia and EIB sign credit line for financing energy-efficient upgrading of housing stock
- Release date: 14 July 2017
- Reference: 2017-201-EN
Vonovia SE and the European Investment Bank (EIB) have concluded a loan contract for EUR 300m. The EU bank’s loan, which is backed by a guarantee from the European Fund for Strategic Investments (EFSI), is intended to part-finance energy-efficiency modernisation measures for the existing housing stock of the real estate management company. The EFSI guarantee facility is an essential pillar of the Investment Plan for Europe (IPE), under which the EIB and the European Commission are working together as strategic partners and the EU bank’s financing operations will boost the competitiveness of the European economy.
The structure of the unsecured funding provides Vonovia with a high degree of flexibility on very favourable conditions. The eight-year loan from the EIB forms part of Vonovia’s comprehensive modernisation and expansion programme.
EIB President Werner Hoyer underlined: “With this loan, it is our aim to support the upgrading of Vonovia’s housing stock and thus make a significant contribution to the fight against climate change, since greenhouse gas reduction is a top priority for us as the EU bank. The funds that we are providing with the backing of the Investment Plan for Europe will be channelled directly into the energy-efficient refurbishment of thousands of Vonovia apartments in Nordrhein-Westfalen and beyond. I am particularly pleased to be doing business for the first time with Vonovia as the financed energy-efficiency measures will lead not only to a reduction in energy consumption and therefore ultimately to a reduction in ancillary costs for tenants, but will also safeguard and create jobs. This shows how climate action and the economy go hand in hand.”
Vonovia’s CFO Stefan Kirsten said: “We are investing in the future of our housing stock. Climate action and the demographic shift are developments, for which we as a housing management company can contribute significantly to solutions. We are pleased to be able deliver on our energy-efficiency upgrading objectives with the help of the EIB funds, and thus further our sustainable investment strategy. This is not only beneficial for our customers but for the whole of society.”
European Commission Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, added: "Upgrading housing units to ensure that they meet the latest energy-efficiency standards is a process that demands investment. That is where the European Fund for Strategic Investments can play an important role. Today's agreement is another demonstration of the important role EU support playa in enabling investments that can help deliver on our broader objective of maximising energy efficiencies and, at the same time, improve the daily lives of thousands of families."