BAVARIA ENERGY EFFICIENCY HOUSING II

This operation concerns an investment program comprising the construction of new energy efficient residential buildings and the energy efficiency renovation of residential buildings.

Both components (new construction and refurbishment) are expected to provide units for rent in Southern Germany.

The proposed operation aims to finance energy efficiency ("EE") projects in Southern Germany.

The operation concerns the construction of high energy efficient residential units and the EE renovation of existing residential units. All units will be for rent only. The operation supports the EU's and Bank's priority in the energy efficiency sector and the EIB's climate action objectives.

Through energy-resource savings, it will contribute to achieving social and public benefits that are not typically internalised in the investment rationale of private investors, including the reduction of energy expenses by the tenants and the reduction of carbon and air pollution emissions.

Therefore, the project will be fully aligned with EU's priorities and goals established in the European Green Deal and particularly in the Renovation Wave. EE investment in residential buildings suffer from a chronical lack of investments.

The operation is expected to yield good economic and social benefits.

The Promoter is deemed fully capable of implementing the project considering its overall experience, including a previous EIB operation.

The EIB additionality to this operation is expected to provide a tangible value added, contributing to accelerate the implementation of the underlying EE schemes, by providing an unsecured term loan, which will be complemented by national promotional funding instruments.

This operation is expected to bring environmental benefits by supporting investments in energy efficient new residential buildings and energy efficient building renovation that will result in a decrease of the total energy consumption and an increase the use of renewable energies and thus contributing to climate change mitigation. Given the scale, location and nature of the individual schemes in built-up urban areas, EIAs, as defined under the EIA Directive 2014/52/EU amending 2011/92/EU, will generally not be required. The Bank will assess the promoter's capacity and procedures to ensure compliance with national and European regulations.

The promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions. However, if after the project appraisal, the EIB were to conclude that the promoter is after all subject to EU public procurement legislation, then the Bank would require the promoter to ensure that contracts for the implementation of the project have been tendered in accordance with the relevant applicable EU procurement legislation.