The EIB Group announced on Wednesday (28 February) that it has provided Austrian bank Hypo Vorarlberg with a 61 million-euro guarantee on the mezzanine tranche of a synthetic securitisation transaction on a 360 million-euro portfolio of loans to small businesses and mid-caps mainly originated in Austria.
“We are pleased to be working with Hypo Vorarlberg, a long-standing partner of the EIB, in supporting the construction of new highly energy efficient residential buildings. This is fully in line with EU and EIB climate action objectives. The cooperation will also support small and mid-sized companies in Austria and Germany in their sustainable transformation, by providing long-term loans on beneficial terms. Together, we are promoting greater energy efficiency and increased investments in the real economy,” said EIB Vice-President Thomas Östros.
The significant risk transfer operation will provide capital relief to create space in Hypo Vorarlberg’s balance sheet and enable the Austrian bank to undertake new lending in support of new highly energy efficient residential buildings, EIB noted in a press release. The guarantee has been fronted by the EIF and counter-guaranteed by the EIB for the entire amount. The transaction is structured with a two-year replenishment period.
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The loan is expected to finance the construction of new, high energy performance residential buildings. These projects are to be implemented in Austria and Germany until the end of 2026.
“We are glad to cooperate with Hypo Vorarlberg to support Austria’s real economy in its sustainable transformation, by providing medium-sized companies with dedicated green financing. Together, we are promoting the expansion of renewable energy and greater energy efficiency in the residential housing sector, supporting the shift away from fossil fuels,” said EIF Chief Executive Marjut Falkstedt.
The EIB Group is made up of the European Investment Bank (EIB) and the European Investment Fund (EIF).