Sweden signs green loan agreement with EIB

Sweden signs green loan agreement with EIB

The European Investment Bank (EIB) has signed a SEK 2.5 billion loan agreement with Wallenstam AB to support the construction of sustainable affordable housing classed as “nearly-zero-energy-buildings” in Sweden. The EIB financing is supported by the European Fund for Strategic Investments (EFSI), the main pillar of the Investment Plan for Europe.

The ground-breaking of the “Väven” project, which will consist of 116 rental homes and is one of the projects under the financing agreement, for which a first SEK 500 million was disbursed. Over the rest of the year, the rest of the loan, which has a one year availability period, is planned to be drawn down in connection to several other sustainable housing projects. The EIB is providing an unsecured credit facility of SEK 2.5 billion with a tenor of seven years.

As required by the EIB, all new constructions will meet the “nearly-zero-energy-building” standard. The goal of the financing is to support the construction of rental property to reduce the current housing shortage in Sweden’s largest cities.

“Wallenstam’s operations are very much aligned with the EIB’s mission, which is not only to contribute to employment and growth but very much also to support climate investment. Therefore, I am pleased that the EIB can contribute to reduce the strain on the availability of rental properties in Sweden through an investment in sustainable housing,” says EIB Vice President Thomas Östros.

Original source: EIB
Published on 29 January 2020