BAKU, Azerbaijan, April 2. The European Investment Bank (EIB) Group, comprising the EIB and the European Investment Fund (EIF), has signed a 93 million euro synthetic securitisation deal with BBVA, focused on financing 100% green projects, Trend reports.
This deal will enable BBVA to mobilise up to 185 million euros for the construction of near-zero emissions residential buildings by small and medium-sized enterprises (SMEs) and mid-caps in Spain’s real estate sector.
Guaranteed by InvestEU, the EU programme aimed at mobilising both public and private investments, the transaction will provide SMEs and mid-caps working on sustainable housing projects with easier access to financing on favorable terms. This support is particularly aimed at regions with lower-than-average income levels.
The funded projects will focus on improving energy efficiency, reducing CO2 emissions, and helping to combat climate change. Many of these projects are expected to be implemented in EU cohesion regions.
The operation highlights the EIB Group's commitment to promoting new financial instruments like securitisation, which help unlock capital for green initiatives, reduce risks for financial institutions, and contribute to the EU’s capital markets union.
BBVA’s portfolio, valued at over 1.4 billion euros in loans to SMEs, will include the senior and junior tranches, while the EIB Group guarantees the 93 million euro mezzanine tranche. The structure of the deal adheres to STS (Simple, Transparent, and Standardised) criteria and includes mechanisms to ensure pro-rata amortisation.