Germany: Financing for affordable housing in Berlin: EIB and HOWOGE agree on EUR 500 million credit facility

• EIB financing to support construction of thousands of new builds across Berlin
• Largest single EIB financing for housing in Germany in last decade
• New-build programme with high energy efficiency standards

The European Investment Bank (EIB) and the municipal housing company HOWOGE Wohnungsbaugesellschaft mbH have signed an unsecured credit facility of EUR 500 million. The EIB financing will support construction of around 3,200 residential units in Berlin by 2029.

With this financing, HOWOGE and the EIB are sending a strong signal to support affordable housing in the German capital. The new builds will be constructed across several Berlin districts and at least 50 per cent will be subsidized. At the same time, the new-build programme will make an important contribution to Berlin’s climate targets because of ambitious energy efficiency standards

This is the first cooperation between HOWOGE and the EIB. The credit facility adds another strategic instrument to the state-owned company’s broadly diversified financing mix and supports HOWOGE’s sustainable growth path. The transaction is also the company’s second framework agreement with a multilateral development bank and the largest single loan transaction in its history to date.

Jörg Kotzenbauer, Managing Director of HOWOGE said: “With the European Investment Bank, we are gaining a strong European financing partner at our side. Especially in times of tight housing markets, this sends a clear signal of social responsibility and long-term stability. At the same time, the partnership gives us access to favourable financing conditions, even in the current challenging market environment. The involvement of a multilateral financing partner also underscores the confidence in HOWOGE’s growth trajectory, business model and financial strength.”

Nicola Beer, Vice-President of the European Investment Bank said: “With this new partnership with HOWOGE, we are supporting the construction of thousands of new homes across Berlin – affordable, energy‑efficient and fit for the future. This project will help reduce energy bills for residents, boost growth and jobs, and strengthen the economic momentum of Germany’s capital. It is also the European Investment Bank’s largest financing for housing investment in Germany in the past decade – a clear signal of how seriously we take our commitment to backing more housing”. 

The financing by the European Investment Bank is supported by the European Union’s InvestEU programme.

Background information  

EIB  

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world. 

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly EUR 89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.   

All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60 per cent of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.   

Fostering market integration and mobilising investment, the Group supported a record of over EUR 100 billion in new investment for Europe’s energy security in 2024 and mobilised EUR 110 billion in growth capital for startups, scale-ups and European pioneers.Approximately half of the EIB's financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average. 

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About HOWOGE

HOWOGE Wohnungsbaugesellschaft mbH is one of the publicly owned housing companies belonging to the State of Berlin. With a housing portfolio of approximately 82,150 apartments (as of 30th June 2025), the company is one of the largest landlords in Germany. In the medium to long term, HOWOGE intends to expand its housing portfolio, particularly through new builds, to around 100,000 residential units. As part of the Berlin school building campaign, HOWOGE is also taking on for the State of Berlin the refurbishment of existing schools and the building of new ones.