The European Investment Bank (EIB) Group has signed a €93 million ($102.7 million) synthetic securitisation agreement with Spanish bank BBVA, aimed at supporting 100% green projects in Spain’s real estate sector. The operation, backed by the InvestEU programme, will help mobilise approximately €185 million in financing for the construction of near-zero emissions residential buildings by small and medium-sized enterprises (SMEs) and mid-cap firms.
Structured to meet the EU’s STS (simple, transparent and standardised) securitisation criteria, the agreement is designed to improve access to affordable finance for developers engaged in sustainable housing. BBVA will retain both the senior and junior tranches of a €1.4 billion SME loan portfolio, while the EIB Group will provide a guarantee on the €93 million mezzanine tranche. The deal also features a synthetic excess spread mechanism and pro rata amortisation, with flexibility to switch to sequential repayment.
The investment is aligned with the strategic priorities of the EIB Group, including climate action, social cohesion, the development of sustainable and affordable housing, and deeper integration of European capital markets.
A significant number of the projects supported under this operation are expected to be located in EU cohesion regions — areas with income levels below the EU average — thereby contributing to regional development and environmental sustainability simultaneously.
“This transaction demonstrates the EIB Group’s continued commitment to innovative financial instruments that unlock capital for green investments while reducing risk for financial institutions,” the group said in a statement.
The agreement reinforces BBVA’s and the EIB Group’s joint efforts to support Europe’s climate goals and facilitate the green transition in the real estate sector, particularly among SMEs and mid-cap developers who may otherwise struggle to access suitable funding.
