Release date: 10 January 2025
Promoter – Financial Intermediary
FINDOMESTIC BANCA SPALocation
Description
Operation dedicated to finance energy efficiency and renewable energy projects carried out in Italy by private individuals.
Additionality and Impact
The operation, in the form of a EIB guarantee on a mezzanine tranche of a synthetic securitization of consumer loans, aims at generating a new portfolio of eligible loans to Italian individuals and households which will be dedicated to projects and investments on Climate Action and Environmental Sustainability (CA&ES) field.
The operation primarily seeks to improve and diversify access to finance by private individuals who are keen to undertake energy efficiency investments in existing buildings and are engaging in small scale renewable energy projects. It will bring positive externalities, through reduced carbon emissions, greater energy efficiency and improved energy security. The project is fully aligned with the EU Renovation Wave Strategy, REPowerEU strategy and Italian NECP 2030. The project supports the climate action objective of the Bank.
The EIB guarantee will increase promoter's lending capacity to the final beneficiaries, providing them with new lending on financially advantageous terms, such as diminishing the financing costs of the underlying EE projects, and/or benefiting from other non-financial advantageous.
The Financial Intermediary, despite being a first time EIB borrower in Italy, belongs to a financial banking Group which has long experience and strong track record in allocating EIB financing. The EIB is also leveraging both on its own and on promoter's solid expertise in ABS operations in order to put in place a structured finance operation which will be critical to support private individuals in their contribution to mitigate global warming. Technical features and policy targets of this operation are highly innovative and original by financial market practices.
Objectives
The operation consists of a EIB guarantee on a mezzanine tranche of a synthetic securitisation promoted by Findomestic SpA, the Italian subsidiary of BNP Personal Finaance, part of BNP Paribas Group. The EIB guarantee will free up capital of the financial intermediary which will be able to generate a new portfolio of green retail consumer finance loans in the amount equal to 2.6x the guarantee amount. The new loans will target energy efficiency and alternative energy production equipment purchased and installed by Italian individuals and households. This is a first operation ever for EIB in Italy targeting retail segment as final beneficiary of EIB resources and bearing a full climate action purpose.
Sector(s)
Proposed EIB finance (Approximate amount)
EUR 94 million
Total cost (Approximate amount)
EUR 399 million
Environmental aspects
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Procurement
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Status
Signed - 28/11/2024