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    Reference: 20180692
    Release date: 5 June 2023

    Promoter – Financial Intermediary

    INSTITUT CATALA DE FINANCES

    Location

    Description

    The project consists of a Multi Beneficiary Intermediated Loan (MBIL) to support the sustainability strategy of the Institut Català de Finances (ICF - Catalan Finance Institute), the public financial institution owned by the Government of Catalonia.

    Additionality and Impact

    The operation targets, on one hand, SMEs and Mid-caps and, on the other hand, it supports the EU's and Bank's priority in the energy sector and the EIB's climate action objectives through the implementation of small-scale renewable projects and energy efficiency projects in industry.


    The operation targets to finance SMEs and Midcaps (100% of the operation). 30% of the operation (i.e. EUR 30m) will target investments in Climate Action initiatives undertaken by SMEs, Mid-caps and self-employed. More specifically, small-scale renewable energy installations (mainly solar PV) and energy efficiency in the industry .


    In addition to the reduction of carbon and air pollution externalities - a social benefit which is not fully internalised by private investors -, the project contributes to the policy objective to support 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, energy efficiency projects suffer from relatively high transaction costs due to their fragmentation and small size. The consequence is sub-optimal financing flows into energy efficiency investments. The EIB's involvement in this project will help to correct this sub-optimal investment situation.

    Overall, the projects are expected to yield good quality and results, thanks to avoided carbon emissions and employment creation. Moreover, the projects will be supported by adequate governance and capabilities of the financial intermediary.

    The project is eligible under Article 309 (c) common interest in energy (renewable energy and energy efficiency) and environment (tackling climate change) and partially under (a) projects for developing less-developed regions.


    The terms and conditions offered will allow the Borrower to maintain a sound and balanced financial structure by matching the tenor of the EIB loan with that of the loans offered to final beneficiaries.

    Providing flexible terms and conditions aligned with the project implementation, such as long grace periods and flexible draw-down conditions, will allow the Borrower to improve its financial efficiency, and provide loan to final beneficiaries with favourable terms.


    The EIB is also assisting the Borrower in its commitment to develop a methodology to identify, quantify and measure the impact of its sustainability activities in line with the the EU Taxonomy.




    Objectives

    The aim is to enhance access to loan finance for SMEs and Midcaps mainly, but not exclusively, investing in sustainability, climate action adaptation and mitigation projects in Catalonia. A share of the investments (estimated at 30%), is expected to comply with the EIB's climate action guidelines, namely for energy efficiency and renewable energy.

    Sector(s)

    Proposed EIB finance (Approximate amount)

    EUR 100 million

    Total cost (Approximate amount)

    not applicable

    Environmental aspects

    The project supports both the European and Spanish targets for renewable energy and energy efficiency, as well as CO2 emissions reduction, in line with the climate change objectives of the EU. More specifically, it supports the objectives of the Renewable Energy Directive (RED) and the Energy Efficiency Directive (EED). With the appropriate conditions in place, the project is acceptable for financing in environmental and social terms. The eligible investments are expected to have positive environmental benefits through renewable energy by reducing greenhouse gas emissions and other air pollutants. The subprojects are expected to have only limited negative environmental and social impacts, if any. Compliance with the Bank's environmental and social standards and national and European environmental regulations will be required.

    Procurement

    The promoter, a public financial institution owned by the Government of Catalonia, has been assessed by the EIB as being a private company not operating in the utilities sector and not having the status of a contracting entity in the subprojects, thus not being subject to EU rules on public procurement or concessions. The projects financed under this operation will have to comply with the related national and EU applicable legislation, where applicable.

    Status

    Signed - 31/05/2023

    Milestone
    Under appraisal
    Approved
    Signed
    29 March 2023
    31 May 2023

    Disclaimer

    Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
    They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).

    Related tags

    Spain Credit lines