CETELEM ENHANCED ABS FOR CLIMATE ACTION

The operation - under the EU PROGRAMME LOAN FOR ABS OPERATIONS (2022-0538) - consists of a synthetic securitisation of a consumer loan portfolio for Cetelem (BNP's consumer bank in Spain) to finance Climate action projects carried out by small and medium sized enterprises (SMEs) as well as private individuals in Spain.

The aim is to originate a new portfolio of Climate Action and Environmental Sustainability loans to individuals and households to renovate their residential properties, carry out small scale renewable energy project and purchase equipment for residential energy efficiency in Spain.

The operation, in the form of an EIB guarantee on a mezzanine tranche of a synthetic securitization of loans, aims to generate a new portfolio of eligible loans to Spanish individuals, SMEs, and self-employed persons dedicated to Climate Action and Environmental Sustainability (CA&ES) projects.

The operation seeks to improve and diversify access to finance for private individuals engaging in small-scale renewable energy projects and energy efficiency investments in existing buildings. It will bring positive externalities through reduced carbon emissions, improved energy security, and greater energy efficiency. The project is fully aligned with the REPowerEU Action Plan and Spain's NECP 2030.

On project quality, the project is supported by adequate capabilities / governance of the promoter.

In terms of project results, the projects are expected to have a positive economic rate of return, considering the economic value of the electricity generated. Therefore, the project is expected to generate a positive broader social benefit by generating clean and renewable electricity at a cost (LCOE) reasonably below the cost alternatives in Spain.

The FI's capacity and track record to originate, appraise, and monitor potential loas financed have been assessed and are deemed satisfactory.

The EIB is leveraging both its own and the promoter's solid expertise in ABS operations to implement a structured finance operation The technical features and policy targets of this operation are highly innovative and original by financial market standards.

The proposed operation falls within the scope of the EIB's Environmental and Social Standards - "Standard 11 Intermediated Finance". The Borrower / Financial Intermediary has adequate capacity, systems and processes in place for identifying, assessing, managing and monitoring environmental, climate and social (ECS) risks related to the potential sub-projects benefitting from EIB support. The Final beneficiaries will be required to comply with applicable national and EU legislation in respect of environmental and social matters, as appropriate.

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