The European Investment Bank (EIB) and Unión de Créditos Inmobiliarios (UCI) are set to finance green investments in Iberia ranging from the refurbishment of existing buildings to the construction of Nearly Zero-Energy properties. These investments will be possible thanks to the provision of energy efficiency mortgages and consumer loans to the market by UCI.
The agreement will enable UCI to generate a new portfolio of green financing of at least EUR 100 million in Spain and Portugal, which includes mortgages, loans to individuals and loans to associations. To this end, the EIB will participate in the senior tranche of a residential mortgage-backed security (“RMBS”) for a total amount of approximately EUR100million. The securitised portfolio has been originated by UCI and is made up of existing Portuguese mortgage loans. This de-linked operation will reinvigorate UCI’s funding capabilities to launch and actively market new green energy product lines, thus expanding UCI´s financing capacity to provide energy efficiency loans in the region. This is the first project supported by the EIB that involves the creation of a portfolio of new energy efficiency loans that fulfil the requirements set by both the EU bank and the Energy Efficiency Mortgage Action Plan (EeMAP), an initiative run by the European Mortgage Federation and encouraged by the European Commission (EC).
The EIB support will enable UCI to finance the construction of Nearly Zero-Energy Buildings and the energy refurbishment of residential properties in Spain and Portugal, with the final beneficiaries being private individuals and homeowners associations. The project will help to meet the region’s climate and energy-saving targets and attract investments in the field of energy efficiency, while promoting the capital market for Residential Mortgage-Backed Securities (RMBSs) in Iberia, especially Portugal, where investments in this field have been modest since the past financial crisis.
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