Signature(s)
Summary sheet
- Energy - Electricity, gas, steam and air conditioning supply
- Industry - Construction
- Credit lines - Credit lines
The operation is structured as multiple beneficiary intermediated loan (MBIL) with IKB to support mid-caps and, to a lesser extent, large corporates in Germany. The MBIL will have a 30% Climate Action and Environment Sustainability window to support renewable energy and energy efficiency projects.
The aim is to facilitate investments that support national and European targets related to renewable energy generation and energy efficiency. As such, the project contributes to EU energy objectives, notably to make energy sustainable, secure and affordable.
This operation concerns a multi-beneficiary intermediated loan ("MBIL") to IKB DEUTSCHE INDUSTRIEBANK AG (IKB) to support MidCaps and, to a lesser extent (30%), large corporates in Germany. The investment from large corporates will be fully dedicated to energy.
The operation has a 30% window targeting Climate Action and Environmental Sustainability (CAES) investments, primarily in renewable energy (mainly solar PV and onshore wind) and energy efficiency in industries and, to a lesser extent, buildings renovation.
The operation is expected to address market failures in access to finance for Midcaps in Germany - which stems from the market failure of asymmetric information, exacerbated by the Ukraine war's economic impact. Specifically, the operation will support social objectives such as employment via the provision of eligible transactions such as loans for working capital and investment purposes to the eligible final beneficiaries.
The operation supports Germany's energy transition, aligning with EU and national energy targets for renewable energy (RE) and energy efficiency (EE) as well as the Bank's CA&ES objectives (30%). The operation is aligned with the EU Directives for Energy Efficiency and Renewable Energy and will also support the REPowerEU+ Action Plan. The Financial Intermediary has sufficient track record and pipeline to implement and allocate EIB products.
EIB funds lent to IKB will be passed on to eligible beneficiaries on financially advantageous terms. The proposed loan will thus contribute to expanding IKB's group customer base, while also supporting the development of its green agenda. The project improves access to finance and improves conditions for final beneficiaries, inter alia through availability, price and conditions for funding.
By improving access to finance for projects supporting the energy transition, the operation is eligible under Article 309(c) of the TFEU, projects of common interest (energy efficiency, renewable energy), tackling climate change.
In addition, the FI expressed interest in receiving technical assistance support as part of the EIB Green Gateway Advisory programme.
This operation will generate environmental benefits by supporting projects that help to mitigate climate change. IKB will ensure the projects' compliance with national and European environmental and biodiversity regulations as well as support the EIB's Public Disclosure Policy, which aims at facilitating access by the public to environmentally relevant information.
Final beneficiaries will be requested to comply with applicable national and EU Procurement Directives, as appropriate.