Release date: 31 March 2023
Promoter – Financial Intermediary
BANCO SANTANDER TOTTA SALocation
Description
The project consists of a securitisation of a loan portfolio comprising residential mortgage backed securities of Banco Santander Totta (BST), a subsidiary of the Group. Through the EIB operation, BST will originate a new portfolio of energy efficiency loans, for high energy performing new buildings and the renovation of existing buildings undertaken by individuals and homeowners associations, and other eligible investments undertaken by small and medium sized enterprises (SMEs) and Midcaps across Portugal.
Additionality and Impact
The operation will target investments in Climate Action initiatives, more specifically energy efficiency investments in buildings by individuals (new construction and renovation) and potentially other energy efficiency investments by SMEs and MidCaps carried out in Portugal. Some of the projects are expected to be located in less developed and cohesion regions. Financial intermediaries such as Banco Santander SA ("Santander" or the "Group") play a central role in such transition, as financing is a key element to unlock the investments required to implement it. Tackling climate change is indeed a key objective of Santander as it has publicly unveiled its commitment to mobilise green finance lending for EUR 120bn between 2019 and 2025; to achieve this target, Santander is supporting its customers by developing tailor-made financial products and services to promote the green transition. In this context, the envisaged operation will allow Banco Santander Totta SA ("BST"), a subsidiary of the Group in Portugal, to increase its financing with high climate-action content to the real economy. On project quality, the projects are supported by adequate capabilities / governance of the promoter.
Objectives
Building upon the experience gained through prior standard operations with entities of Banco Santander across the European Union (EU) under the PPG entailing access to finance for SMEs/Midcaps, the proposed operation seeks to facilitate investments with high climate action content in Portugal through BST.
Sector(s)
- Urban development - Construction
- Industry - Construction
Proposed EIB finance (Approximate amount)
EUR 81 million
Total cost (Approximate amount)
EUR 227 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 - 24/03/2023
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).