EIB provides SEK 800M loan to build 743 new homes in Skellefteå, Sweden

The EIB loan of SEK 800 million (€70 million) contributes to the promotion of Skellefteå’s integrated urban development and social integration objectives and will help the municipality to diversify its funding sources.

The European Investment Bank (EIB) will finance new social housing in Skellefteå, Sweden. In light of the green industrialisation in the region, for example through the expansion of Northvolt’s gigafactory, new affordable housing is needed. The EIB loan of SEK 800 million (€70 million) contributes to the promotion of Skellefteå’s integrated urban development and social integration objectives and will help the municipality to diversify its funding sources.

The social and affordable housing programme, which features the construction of 743 affordable housing units, foresees that some 57% of the new building stock will be specific housing for students or housing that otherwise strengthens the supply of skills in the ongoing societal transformation. Next to this, a small part of the new units will be dedicated to people on social lease contracts, which includes people with very low income.

EIB Vice-President Thomas Östros stated: “The Bank’s mission is to foster sustainable growth, including improving livelihoods, and this project is a very good example of that. The financing to Skellefteå Kommun supports EU priorities in energy efficiency and local needs for affordable housing, which has a direct impact on people’s lives. As one of the leading regions in the green transition, Västerbotten county in northern Sweden is going through transformative times, and we are glad to be able to support the transition in its different facets.”

“Slowing down construction in Skellefteå is not an option for us. The support from the EU and the loan from the EIB help us to maintain a high pace in the production of new housing, and it also shows how significant Skellefteå's unique social transformation is for Europe. The loan terms on energy efficiency and social housing also suit us perfectly, not in the least considering that our new environmental and climate program focuses on sustainability for nature, people and climate.” added Lorents Burman, chairman of the Municipal Board at Skellefteå Kommun

By increasing the housing supply, Skellefteå’s plans are expected to contribute to a more balanced local residential market, as well as keeping construction going. It will also promote the development of sustainable and inclusive communities, while addressing the high demand for housing in a region of Sweden that is undergoing reindustrialisation of its economy.