Summary sheet
The operation will target 100% green mortgages by private individuals in Spain.
The aim is to enhance access to green mortgages for the final beneficiaries, in particular private individuals and homeowners' associations.
By transferring the credit risk of the existing securitised consumer loans and leases portfolio, the proposed operation will reduce the risk-weighted assets and thus enable the Financial Intermediary, Santander Bank, to release regulatory capital. The capital relief provided will increase the Financial Intermediary's credit capacity and allow for the origination of new loans to Final Beneficiaries (private individuals) dedicated to support lending to highly energy efficient building construction. Such capital relief is not readily available from commercial financiers and therefore unlocks additional lending.
Energy efficiency investments in buildings suffer from a number of 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 is expected to contribute to the provision of high quality and energy efficient housing, and contributes to supporting the Spanish government's climate change mitigation ambitions by addressing the suboptimal levels of investments in highly energy efficient building construction and EE-eligible renovation.
The operation is expected to generate good economic and social benefits. The Financial Intermediary is deemed capable of implementing the project considering its overall experience on the Spanish market and previous EIB operations.
Some of the projects are expected to be located in less developed and transition cohesion regions.
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
End beneficiaries will be individuals.