HYPO VORARLBERG ENHANCED SUPPORT FOR EE III

Promoteur – Intermédiaire Financier

HYPO VORARLBERG BANK AG

Lieu

• Autriche

Description

The project consists in a loan substitute operation in the form of a guarantee covering the mezzanine tranche on a granular SME portfolio originate by Hypo Vorarlberg. The guarantee instrument is designed to facilitate the financial intermediary to finance new loans dedicated to energy efficiency investments and development of highly energy efficient buildings across Austria.

Additionality and Impact

By transferring the credit risk of the existing securitised SME and Mid-Cap portfolio, the proposed operation will reduce the risk-weighted assets and thus enable the Promoter Hypo Vorarlberg to release regulatory capital. The capital relief provided will increase the Promoter's credit capacity and allow for the origination of new loans to Final Beneficiaries dedicated to support lending to highly energy efficient building construction and other EE-projects. Such capital relief is not readily available from commercial financiers and therefore unlocks additional lending.

Energy efficiency investments in buildings suffer from a number market failures (negative CO2 externalities, asymmetric information, and split incentives). As a result of these market failures, investments in energy efficiency are at sub-optimal levels from a socio-economic perspective. The proposed operation contributes to supporting the Austrian government's climate change mitigation ambitions by addressing the suboptimal levels of investments in highly energy efficient building construction and EE-eligible renovation.

Objectifs

The proposed guarantee instrument is designed to facilitate the financial intermediary to finance new loans dedicated to energy efficiency investments and development of highly energy efficient buildings across Austria.

Secteur(s)

• Industrie - Construction

Montant BEI envisagé (montant approximatif)

EUR 61 million

Coût total (montant approximatif)

EUR 150 million

Aspects environnementaux

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

Passation des marchés

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

Statut

Signé - 6/12/2023