Summary sheet
This operation is dedicated to 100% sustainable housing across Spain. All projects will adhere to the EIB's climate action guidelines, with a primary focus on energy efficiency initiatives - specifically, the new construction of NZEBs+ (Nearly Zero-Energy Buildings and beyond). These projects will be undertaken by real estate developers, private individuals, and housing associations.
The aim is to support climate projects in sectors supporting both national and European targets for energy efficiency and renewable energy, as well as the reduction of CO2 emissions. As such, the project meets the EIB and EU Taxonomy requirements and supports EU objectives in terms of climate action and diversification of energy supply.
The proposed operation is a synthetic securitisation of a residential mortgage portfolio originated by BBVA (Financial Intermediary, FI). The FI will create a new portfolio of green projects in Spain, specifically Energy Efficiency projects (new construction of nearly zero-energy buildings (NZEBs+) residential buildings) carried out by SMEs and MidCaps in Spain (real estate developers), private individuals (green mortgages) and home owner associations (building refurbishment).
The operation supports the EU's and Bank's priorities in the energy sector, the EIB's climate action objectives, and will contribute to the achievement of Spain's National Energy and Climate Plan.
Some of the projects are expected to be located in less developed and cohesion regions. The operation enhances access to finance for final beneficiaries for Climate Action related investments and improves financing conditions for them through long term tenors and favourable financing conditions. Financial intermediaries, including BBVA, are pivotal in this transition, as financing is crucial for unlocking the investments needed for its realisation.
The operation contributes to reduce the market failures linked to asymmetric information and split incentives between property owners, who undertake energy efficiency investments, and tenants, who pay the energy bills. Thermal comfort in the dwellings is ensured while households' energy costs/consumption is kept to minimal levels.
The Financial Intermediary is deemed to be capable of implementing the operation considering its overall experience. The operation is expected to be both financially and economically viable, with a good economic rate of return (ERR) and positive broader social benefit.
The EIB is a key partner to BBVA to achieve this target and has developed specific EIB products, including those targeting green financing with EIB requirements for its branch network and clients.
The project would not have been carried out (to the same extent) without the EIB support.
At project implementation and monitoring EIB will perform Ad hoc interventions, e.g. monitoring missions, to ensure compliance with Annual PPR.
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.