The EIB Group (European Investment Bank and European Investment Fund) and Santander have signed a new synthetic securitization transaction to support the financing of energy efficiency investments in Portugal, including the construction of new nearly-zero-emissions buildings and the renovation of existing residential properties in line with sustainable standards.
The agreement was signed in Lisbon by the EIB Vice-President Ricardo Mourinho Félix, EIF Director George Passaris, the Vice-President of Santander Portugal, Manuel Preto, and the Director of Santander Portugal, Amílcar Lourenço.
The transaction will facilitate new green and sustainable mortgages to individuals and companies (SMEs and MidCaps), to invest in building renovations or new construction with high energy-efficiency standards, in compliance with the eligibility conditions defined by the EIB.
It is the first synthetic securitisation transaction of Santander with the EIB Group in Portugal. Under the transaction, the EIB Group will provide a €81 million unfunded guarantee that will enable Santander to finance new energy efficiency investments for an amount equal to twice the size of the EIB Group guarantee.
The individual projects, which will benefit from such new financing, may reach an investment of up to €25 million, with a maximum amount of funding of up to €12.5 million, and a minimum term of two years.
The projects financed by this operation will contribute to the reduction of CO2 emissions, deliver health benefits through improved air quality, and contribute to climate change mitigation.
“We are delighted to join forces with Santander in this securitization to support the green transition in the Portuguese residential housing segment,” EIB Vice-President Ricardo Mourinho Félix said. “With this new signature, the EIB Group continues supporting the expansion of the green mortgage offers and its accessibility in Portugal. Accelerating the transition to more sustainable housing solutions in the country is a key component of the EIB commitment to climate action and environmental sustainability in Portugal.”
Amílcar Lourenço, Director of Santander in Portugal, underlined the importance of this new agreement with the EIB, “which allows new funds to reach those who invest in the energy efficiency of buildings. At Santander, we want to point the way towards the climate transition, encouraging and creating conditions for people and companies to be increasingly sustainable”.
“At the EIF, we are proud to be doing our part in promoting green financing solutions. This securitisation transaction, bringing together European and local actors, will make available considerable resources to improve energy efficiency in households across Portugal,” said EIF Chief Executive Marjut Falkstedt. “Tackling climate change and boosting environmental sustainability is an uphill battle, but it is very encouraging when we are able to make a tangible contribution in achieving real progress”.
The project supports the national and European targets for energy efficiency and renewable energy. More specifically, it supports the objectives of the European Performance of Buildings Directive (EPBD), the Energy Efficiency Directive (EED), and the Renewable Energy Directive (RED), as well as Portugal's National Energy and Climate Plan (NECP).
About the EIB
The European Investment Bank Group (EIB Group) — formed by the European Investment Bank (EIB) and the European Investment Fund (EIF) — reported another year of excellent results in Portugal with €1,7 billion of total financing signed in 2022.
About the EIF
The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and micro-finance instruments that specifically target this market segment. In this role, it contributes to the achievement of key EU policy goals such as competitiveness and growth, innovation and digitalisation, social impact, skills and human capital, climate action and environmental sustainability.
About Santander Portugal
Santander Portugal is a reference bank in the Portuguese financial system, with the mission of contributing to the development of people and companies. Serving more than 1.7 million customers, Santander's vision is to be the best open platform for financial services, acting responsibly and earning the trust of employees, customers, shareholders and society.
Santander is the largest private bank in Portugal, both in terms of profitability and lending. Its balance sheet strength is reflected in high capital ratios (CET1 of 13.5% in March 2023, above the SREP requirement of 8.3%), and a high quality loan portfolio (NPE ratio of 2. 1%).
The Bank has been focusing on digitization, simplification of processes and innovation, providing a closer and more personalized service to its customers, in order to provide them with the best possible experience.