CLIMATE ACTION AUSTRIA RLB STEIERMARK (FL)

Intermediated Framework Loan with RLB Steiermark for the financing of small and medium-sized renewable energy and energy efficiency projects in Austria.

The loan will support the development of renewable energy and energy efficiency projects in Austria, contributing to energy targets in the country and consequently in the European Union.

The project intends to address current high demand for long-term financing to support sustainable energy projects in Austria. This demand in particular for the renewable energy market (small and medium-size projects) is causing a certain lack of availability of competitively priced long-term financing sources, creating a market gap which the EIB attempts to fill with this operation. The loan aims to further increase EIB's outreach in financing of Renewables and Energy Efficiency in Austria by engaging a recognised Financial Intermediary to leverage on its local presence, experience and established leadership position in the targeted market. The EIB will provide long-term financing at affordable prices at a time when commercial bank long-term lending has become significantly more scarce, in the current energy crisis and changed economic context following the war in Ukraine. The Bank's involvement will further provide the Financial Intermediary with a high level of flexibility in terms of drawdowns, thereby facilitating the deployment of the facility. Through this innovative product, it is expected that the crowding in effects will amplify even further the EIB's impact and outreach.

The project is expected to have a cumulative good economic return and thus to bring about a social benefit by generating clean and renewable power or by achieving energy savings, as well as to yield good quality and results thanks to avoided carbon emissions and employment creation.

Furthermore, the operation will support the achievement of the targets set out in the National Energy and Climate Plan (NECP) of Austria and the EIB's contribution towards financing Climate Action projects in the EU.

This operation aims at generating environmental benefits by supporting projects that help mitigate climate change. The Bank will assess the capacity and procedures of the financial intermediary to ensure compliance with the national and European environmental and biodiversity regulations as well as their capacity to support the Bank's public disclosure policy, which aims to facilitate access by the public to environmentally relevant information.

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.