EIB invests €490 million with ICF to finance the construction of affordable and energy-efficient homes in Catalonia

This article is published in association with European Investment Bank.

• The total loan of €490 million includes an initial tranche of €163 million that has now been signed.
• The EIB investment will help finance the construction of affordable rental housing throughout Catalonia.
• This investment has been made possible with backing from the European Union’s InvestEU programme to mobilise public and private sector funds in support of EU policy goals.

The European Investment Bank (EIB) and Institut Català de Finances (ICF) have signed a €163 million loan to finance the construction of affordable rental housing with high energy efficiency standards in Catalonia, Spain. This is the first tranche of a total loan of €490 million backed by the European Union’s InvestEU programme.

The investment is expected to finance the construction of more than 4 300 social rental housing units benefiting over 10 000 people, thereby contributing to social inclusion and urban regeneration. The homes are expected to be completed by mid-2028, and will help address the shortage of affordable rental housing, reduce energy consumption and related costs for tenants, and cut greenhouse gas emissions. The investment contributes to the EIB’s strategic priority of strengthening Europe’s social infrastructure by funding healthcare, education and housing.

“Access to affordable and environmentally friendly housing has become a basic necessity in many European regions and is one of the EIB’s strategic priorities,” said Gilles Badot, director of EIB operations for Spain and Portugal. “We are delighted to join forces once again with ICF in this major operation to provide the people of Catalonia with energy-efficient homes tailored to their needs.”

The project is key to addressing the shortage of affordable housing – a priority for Catalonia, where available social rental housing represents just 1.7% of primary residences, according to the Observatorio Metropolitano de la Vivienda de Barcelona.

Catalonia Region Minister of Economy and Finance Natalia Mas said: “This is a historic operation, not only because it is the largest EIB loan ever agreed with ICF, but also because it addresses a pressing issue: access to housing. Finding a home is currently very difficult for many people. The main reason for this is limited supply – especially in the public sector – and this operation will help us to solve this problem.”

ICF CEO Vanessa Servera i Planas added: “As a public sector promotional bank, ICF’s strategic focus is on promoting social and affordable rental housing, together with the green transition, reindustrialisation and support for the primary sector. This EIB loan – and the important support of the Catalan Housing Agency in the form of subsidies for the financial cost of the operations – will enable us to finance more sustainable rental housing projects to guarantee the right to housing in Catalonia.”

The project will also foster economic growth and skilled job creation in the construction sector. The project will generate the equivalent of 6 850 jobs during its implementation.

This loan comes in addition to over financing and advisory partnerships between the EIB Group and ICF, the goal of which is to drive the dual green and digital transition and improve business competitiveness. Other recent partnerships include the launch of the Fondo de Inversión en Tecnología Avanzada (FITA, Advanced Technology Investment Fund) in February 2024 and the loan signed by the EIB and ICF in June 2023 to finance small businesses and mid-caps in Catalonia, complete with an advisory service for sustainable projects.

Background information

European Investment Bank

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investments that further 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 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 in 2023.

InvestEU

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investment for EU policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the Member States, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners who will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

About ICF

ICF is Catalonia’s public promotional bank, with the main goal of driving the growth of businesses and entities. It finances relevant, transformational projects through loans and capital, with special emphasis on the green transition, reindustrialisation and social housing. The ICF often supplements commercial bank lending, offering long repayment terms to facilitate debt repayment. Since 2014, it has been a member of the European Association of Public Banks (EAPB), which brings together many of the public banks and financial institutions operating in Europe.