EIB and Hypo Vorarlberg to construct energy-efficient buildings in Austria

The EIB has also provided a €50 million loan to Hypo Vorarlberg for investments undertaken by small and medium-sized companies (SMEs), mid-caps and private individuals.

The EIB Group, consisting of the European Investment Bank (EIB) and the European Investment Fund (EIF), has provided Hypo Vorarlberg with a €61 million guarantee on the mezzanine tranche of a synthetic securitisation transaction on a €360 million portfolio of loans to small businesses and mid-caps mainly originated in Austria.

The significant risk transfer operation will provide capital relief to create space in Hypo Vorarlberg’s balance sheet and enable the Austrian bank to undertake new lending in support of new highly energy efficient residential buildings. The guarantee has been fronted by the EIF and counter-guaranteed by the EIB for the entire amount. The transaction is structured with a two-year replenishment period.

The transaction underlines EIB Group’s firm commitment to the field of synthetic securitisation in Austria, expanding cooperation to support energy efficiency investment and thereby the green transition.

The EIB has also provided a €50 million loan to Hypo Vorarlberg for investments undertaken by small and medium-sized companies (SMEs), mid-caps and private individuals. Companies with up to 3 000 employees will be able to apply for long-term loans at preferential rates through Hypo Vorarlberg.  

The operation will make it easier for Austrian and German SMEs and mid-caps to access finance. Due to their size, these companies would otherwise receive less favourable financial support.

The loan will also finance the construction of new, high energy performance residential buildings. The construction of new buildings and building refurbishments generates local economic activity and helps create jobs. These projects will be implemented in Austria and Germany until the end of 2026.

EIB Vice-President Thomas Östros, who oversees operations in Austria, said, “We are pleased to be working with Hypo Vorarlberg, a long-standing partner of the EIB, in supporting the construction of new highly energy efficient residential buildings. This is fully in line with EU and EIB climate action objectives. The cooperation will also support small and mid-sized companies in Austria and Germany in their sustainable transformation, by providing long-term loans on beneficial terms. Together, we are promoting greater energy efficiency and increased investments in the real economy.”

EIF Chief Executive Marjut Falkstedt said: “We are glad to cooperate with Hypo Vorarlberg to support Austria’s real economy in its sustainable transformation, by providing medium-sized companies with dedicated green financing. Together, we are promoting the expansion of renewable energy and greater energy efficiency in the residential housing sector, supporting the shift away from fossil fuels.”

Chairman of Hypo Vorarlberg’s Managing Board Michel Haller added: “I am very pleased about the once again very successful cooperation with the EIB and EIF. Both the long-term funds provided by the EIB and the further strengthened capital base due to the guarantee agreement will help the bank to support the regional economy as well as the green transition.”