Spain: EIB Group and BBVA unlock €800 million to support energy transition and small and medium-sized enterprises

This article is published in association with European Investment Bank.

• The EIB Group has invested €377 million in a BBVA asset-backed securitisation operation.
• The agreement will enable BBVA to unlock €800 million to finance energy efficiency projects and mortgages for highly energy-efficient homes, as well as projects to boost the competitiveness of Spanish small and medium-sized enterprises (SMEs).
• The operation contributes to EIB Group priorities such as climate action, cohesion, and the development of the green securitisation market in Europe. 

The EIB Group (European Investment Bank and European Investment Fund) has invested €377 million in the ¨BBVA Consumer 2024-1¨ securitisation fund. This investment will enable BBVA to channel nearly €800 million into the real economy to finance energy efficiency projects and new mortgages for highly energy-efficient homes. The operation also includes financing for projects to boost the competitiveness of small and medium-sized enterprises (SMEs) and mid-caps in Spain.

This new securitisation agreement is the second signed between the two entities in recent months to support energy efficiency projects. In March 2024, the EIB Group invested €100 million in a BBVA synthetic securitisation of mortgage loans to help finance investments in energy efficiency, including the construction of new buildings with near-zero emissions. This EIB Group investment has enabled BBVA to put a portfolio of mortgages on the market worth more than €200 million for highly energy-efficient homes.

Both agreements support the development of the European securitisation market and specifically the green securitisation market, a particularly important area for the capital markets union.

“We are thrilled to be collaborating with BBVA on these operations, which will not only contribute to the green transition in Spain, but also to the development of the green securitisation market in Europe, and more broadly to the capital markets union,” said Birthe Bruhn-Léon, director of the Financial Institutions Department at the EIB.

“The EIF is delighted to be taking a further step towards the green transition and sustainable development through these two investments. They are also prime examples of the potential of securitisation activity to promote private sector investment and the capital markets union,” said Marco Marrone, head of Guarantees, Securitisation and Inclusive Finance at the EIF.

“This agreement reinforces our support for energy efficiency projects and the competitiveness of Spanish SMEs, promoting sustainable economic development in Spain. These types of operations are vital for providing financing to the real economy, promoting projects that have a positive impact both on the economy and society,” said Iván Poza, global head of Financial Institutions and Public Finance at BBVA.

EIB Group investment in BBVA securitisation agreements

The EIB Group investment in the BBVA Consumer 2024-1 securitisation fund includes a commitment of around €345 million from the EIB, and €32 million from the EIF. The EIF investment will enable BBVA to make a loan portfolio worth €64 million available to SMEs, half of which will have a green component. The EIB investment will enable BBVA to mobilise €620 million for mortgages for highly energy-efficient homes and €182 million for SME project financing.

The previous EIB Group investment in BBVA’s synthetic securitisation of mortgage loans in March 2024 included a commitment of €76 million from the EIB, and €25 million from the EIF. Private investors also invested in other tranches of the securitisation structure. This EIB Group investment has enabled BBVA to make a portfolio of mortgages worth more than €200 million available to individuals for highly energy-efficient homes.

Background information

About the EIB Group

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investment contributing to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The European Investment Fund (EIF) is part of the European Investment Bank Group (EIB Group). Its central mission is to support Europe’s micro, small and medium-sized businesses (SMEs) by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments that specifically target this market segment. In this role, it contributes to the achievement of key EU policy goals such as competitiveness and growth, innovation and digitalisation, social impact, skills and human capital, climate action and environmental sustainability.

The European Investment Bank Group (EIB Group), consisting of the European Investment Bank (EIB) and the European Investment Fund (EIF), reported total financing signatures in Spain of €11.4 billion in 2023, approximately €6.8 billion of which went to climate action and environmental sustainability projects. Overall, the EIB Group signed €88 billion in new financing worldwide in 2023.

About BBVA

BBVA is a global financial group that was founded in 1857. Operating in more than 25 countries, the group has a solid leading position in Spain, is the largest financial institution in Mexico, and has leading franchises in South America and Türkiye. BBVA’s activities contribute to the progress and well-being of all its stakeholders, including shareholders, customers, employees, suppliers and society as a whole. It supports families, entrepreneurs and companies in their plans, and helps them to take advantage of the opportunities afforded by innovation and sustainability. BBVA also offers its customers a unique value proposition, helping them to improve their financial health by providing tailored advice based on technology and data.