CAIXABANK RISK SHARING EUROPEAN CLIMATE ACTION

Promoter – Financial Intermediary

CAIXABANK SA

Location

• Spain

Description

The operation consists in a funded/unfunded delinked risk sharing covering an existing loan portfolio to finance projects in the renewable energy and infrastructure sectors.

Additionality and Impact

This operation increases renewable energy generation capacity in the EU and contribute to the EU 2030 climate objectives, also in the context of the RePowerEU Plan. The operation will finance multiple renewable energy projects, each of them producing electricity from low carbon sources, including mainly solar PV plants, onshore/offshore wind farms, and other sustainable investments.

The operation will address the market failure of negative climate and environmental externalities by reducing carbon emissions and other air pollution compared to fossil-fuel generation. The project is expected to generate a strong social benefit by producing renewable electricity at a cost below the cost of fossil-fuel based alternatives.

CaixaBank is an experienced and well-known EIB counterpart that has shown a good track record in the renewable energy sector in Spain. The transaction is supported by a good governance system and strong project management capabilities. EIB will provide a meaningful part of the total financing needs of the projects, which are expected to rely on revenues from the market. This operation improves market efficiency and competition in a sector characterized by incomplete markets.

EIB loans with customized debt terms, favourable financing conditions and long-term tenors are critical for projects with a high Climate Action component, which typically require longer investment periods. EIB endorses these higher risk structures to achieve the desired impact. The EIB's presence will have a signalling effect and attract other investors to the project.

Objectives

The aim is to provide new loans to support eligible renewable energy transactions in Spain and across Europe. The operation also contributes to the EU-wide target of 32% of energy from renewable sources in gross final energy consumption (RES) for 2030 as set out in the EU RE Directive (Directive (EU) 2018/2001). It further contributes to the national renewable energy targets, including Spain's Integrated National Energy and Climate Plan (NECP). The latter foresees for 2030 a national target of 42% renewable energy in the final energy consumption (RES). It is envisaged for a number of projects to be located in EIB Cohesion Priority Regions. The project is therefore eligible under Article 309 (a) projects for developing less-developed regions and (c) common interest. The financing of this project would contribute to the EIB's lending priority policy on social cohesion, renewable energy and climate action.

Sector(s)

• Energy - Electricity, gas, steam and air conditioning supply

Proposed EIB finance (Approximate amount)

EUR 150 million

Total cost (Approximate amount)

EUR 300 million

Environmental aspects

The Bank's services will verify that the projects and associated transmission lines fall within Annex II of the Environmental Impact Assessment (EIA) Directive (Directive 2011/92/EU amended by the EIA Directive 2014/52/EU 2011/92/EU). All the projects shall be screened in by the competent authority and be subject to an environmental impact assessment (EIA) process, in order to obtain the required environmental permits. All the projects and associated infrastructure shall be located outside Natura 2000 sites or other protected areas. The authorisation procedure and compliance with the relevant EU directives, specifically Habitats and Birds Directives (92/43/EEC and 2009/147/EC respectively), will be further assessed at appraisal, in particular the potential cumulative impacts assessment and the impacts on protected flora and fauna, including Natura 2000 sites.

Procurement

The expected final beneficiaries have been assessed by the EIB as being private companies not being subject to EU rules on public procurement or concessions. However, the Bank will require CaixaBank to take all the requisite measures to ensure that the procurement procedures carried out by the final beneficiaries for the sub-projects comply with the relevant EU legislation and the applicable national legislation.

Status

Signed - 21/12/2023