In Austria, Hypo Vorarlberg Bank AG has secured funding back-up from the EIB Group to expand the funding of energy efficiency programmes.
The European Investment Bank (EIB) and the European Investment Fund have provided a mezzanine guarantee on a €330 million ($400 million) portfolio of mainly Austrian loans to SMEs and mid-caps.
Hypo Vorarlberg will expand its lending to households, SMEs and mid-cap customers for new highly energy-efficient residential buildings.
The operation is supported by the Investment Plan for Europe under which the EIB and the European Commission are working together as strategic partners to boost the competitiveness of the European economy.
Thomas Östros, EIB vice-president responsible for operations in Austria, commented: “This transaction clearly leverages EIB Group synergies, and strengthens Hypo Vorarlberg’s capacity to increase its lending targeting the construction of new highly energy-efficient residential buildings. The new agreement demonstrates the EIB Group’s determination to deliver on its public commitment of being the EU climate bank, in line with the Paris agreement.”
Michel Haller, chairman of Hypo Vorarlberg’s Managing Board, said: “The second synthetic securitisation of Hypo Vorarlberg will further strengthen our capital base, creating an important prerequisite for the bank to support the regional economy. Thus, the COVID crisis can be overcome in the best possible way and an important impulse for a sustainable construction industry can be given. The securitisation instrument developed in conjunction with the EIB and EIF is thus important and forward-looking for the bank’s capital and credit risk management.”
Hypo Vorarlberg Bank AG (Hypo Vorarlberg) is a regional bank that offers a range of retail and corporate banking products and services. In Austria Hypo Vorarlberg operates through a network of 18 branches.