ICF GREEN INVESTMENTS MBIL

The operation consists of a Multi Beneficiary Intermediated Loan (MBIL) to Institut Catala de Finances (ICF).

The aim is to support sustainable and climate action adaptation and mitigation investments in, but not limited to, Catalonia.

The operation will support Institut Catalá de Finances (ICF) to finance SMEs and Mid-caps. As such, it aligns with EU objectives by contributing to job creation and enhancing the competitiveness and productivity of SMEs and Midcaps in Spain. The operation will include a 30% Climate Action and Environmental Sustainability (CA&ES) window, to support the implementation of small-scale renewable projects and, to a lesser extent, energy efficiency, sustainable mobility, circular economy and waste management projects, therefore supporting the EU's and Bank's priority in the energy sector and the EIB's climate action objectives.

The operation will partially contribute to the reduction of carbon and air pollution externalities and to the policy objective for the market integration of renewable energy projects and the renewable energy self-consumers, as set out in the EIB's Energy Lending Policy. In addition, the operation will contribute to tackle the sub-optimal financing flows into energy efficiency investments which suffer from relatively high transaction costs due to their fragmentation and small size. The operation also addresses the constrained access to finance for SMEs/Midcaps which stems from the market failure of asymmetric information.

The capacity of ICF to implement the operation is deemed good and with clear objectives towards sustainable investments. ICF has recently received technical assistance from the EIB which has strengthened the knowledge and the expertise of ICF regarding the CA&ES investments.

Overall, the projects are expected to yield a very good economic return and an excellent broader social benefit due to avoided carbon emissions and employment creation.

The project is eligible under Article 309 (c) common interest (renewable energy, energy efficiency and smart transportation) and environment (tackling climate change), having a positive signalling effect, and aligned with its strategic priorities and goals.

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.