• The transaction will facilitate new green and sustainable mortgages to individuals and small and midcap companies to invest in building renovations or new construction with high energy-efficiency standards
• It is the first synthetic securitization transaction of Santander with the EIB Group in Portugal
• Individual projects may reach an investment of up to €25 million and a minimum term of two years

The EIB Group (European Investment Bank and European Investment Fund) and Santander have signed a new synthetic securitization transaction to support the financing of energy efficiency investments in Portugal, including the construction of new nearly-zero-emissions buildings and the renovation of existing residential properties in line with sustainable standards.

The agreement was signed in Lisbon by the EIB Vice-President Ricardo Mourinho Félix, EIF Director George Passaris, the Vice-President of Santander Portugal, Manuel Preto, and the Director of Santander Portugal, Amílcar Lourenço.

The transaction will facilitate new green and sustainable mortgages to individuals and companies (SMEs and MidCaps), to invest in building renovations or new construction with high energy-efficiency standards, in compliance with the eligibility conditions defined by the EIB.

It is the first synthetic securitization transaction of Santander with the EIB Group in Portugal. Under the transaction, the EIB Group will provide a €81 million unfunded guarantee that will enable Santander to finance new energy efficiency investments for an amount equal to twice the size of the EIB Group guarantee.

The individual projects, which will benefit from such new financing, may reach an investment of up to €25 million, with a maximum amount of funding of up to €12.5 million, and a minimum term of two years.

The projects financed by this operation will contribute to the reduction of CO₂ emissions, deliver health benefits through improved air quality, and contribute to climate change mitigation.

See relate article: Santander US Releases Environmental, Social and Governance Report

“We are delighted to join forces with Santander in this securitization to support the green transition in the Portuguese residential housing segment,” EIB Vice-President Ricardo Mourinho Félix said. “With this new signature, the EIB Group continues supporting the expansion of the green mortgage offers and its accessibility in Portugal. Accelerating the transition to more sustainable housing solutions in the country is a key component of the EIB commitment to climate action and environmental sustainability in Portugal.”

Amílcar Lourenço, Director of Santander in Portugal, underlined the importance of this new agreement with the EIB, “which allows new funds to reach those who invest in the energy efficiency of buildings. At Santander, we want to point the way towards the climate transition, encouraging and creating conditions for people and companies to be increasingly sustainable”.

“At the EIF, we are proud to be doing our part in promoting green financing solutions. This securitisation transaction, bringing together European and local actors, will make available considerable resources to improve energy efficiency in households across Portugal,” said EIF Chief Executive Marjut Falkstedt. “Tackling climate change and boosting environmental sustainability is an uphill battle, but it is very encouraging when we are able to make a tangible contribution in achieving real progress”.

The project supports the national and European targets for energy efficiency and renewable energy. More specifically, it supports the objectives of the European Performance of Buildings Directive (EPBD), the Energy Efficiency Directive (EED), and the Renewable Energy Directive (RED), as well as Portugal’s National Energy and Climate Plan (NECP).