EIB Group and Cetelem Partner to Accelerate Household Energy Efficiency in Spain

The initiative is aimed at accelerating household investments in energy efficiency across Spain, fostering greener consumption patterns and supporting the EU’s broader climate goals.

The European Investment Bank (EIB) Group, consisting of the European Investment Bank (EIB) and the European Investment Fund (EIF), has taken a significant step in supporting climate action and sustainable development through a €93 million synthetic securitisation agreement with Cetelem, the Spanish commercial brand of BNP Paribas Personal Finance. The initiative is aimed at accelerating household investments in energy efficiency across Spain, fostering greener consumption patterns and supporting the EU’s broader climate goals.

Financing the Green Transition at Household Level

This innovative transaction, the first of its kind between Banco Cetelem and the EIB Group, is structured to mobilise up to €200 million in new financing. The capital will be directed exclusively toward green investments made by households, enabling energy efficiency upgrades such as residential property renovations, small-scale renewable energy projects, and the purchase of energy-efficient appliances.

Eligible home improvement projects include installing high-efficiency boilers, thermal insulation windows, and solar photovoltaic systems. These upgrades aim to reduce household energy consumption, cut CO₂ emissions, and support the mitigation of climate change.

Supporting Low-Income and Cohesion Regions

A significant portion of the financing is expected to be channelled to EU cohesion regions in Spain, which are characterized by below-average income levels. This approach aligns with the EIB Group’s commitment to equitable development and social inclusion by ensuring that all regions, regardless of economic standing, can participate in and benefit from the green transition.

A Strategic Fit with EIB Group’s 2024–2027 Roadmap

The agreement underpins several key priorities of the EIB Group's Strategic Roadmap for 2024–2027, particularly those related to climate action, sustainable housing, support for cohesion regions, and the advancement of the EU Capital Markets Union. By promoting structured finance products like synthetic securitisation, the EIB Group enhances capital mobilisation while reducing risk for sponsoring financial institutions.

Gemma Feliciani, Director of Financial Institutions at the EIB, emphasized the importance of this collaboration:

“We are very pleased to join forces for the first time with Cetelem in Spain to make it easier for households to invest in energy efficiency projects. Supporting financial institutions to unlock capital that makes the energy transition accessible to all is at the core of the EIB's vision to advance climate action and the integration of European capital markets.”

Unlocking Capital Through Innovative Structures

Under the deal, the EIF provides credit protection on the €93 million mezzanine tranche of a reference portfolio composed of Spanish consumer auto loan exposures. This tranche is counter-guaranteed by the EIB, which effectively distributes the risk and enhances the credit profile of the securitisation. The junior tranche remains fully retained by Cetelem.

The transaction includes several key structural features such as a synthetic excess spread to provide credit enhancement, a one-year revolving period allowing new loan additions to the pool, and a pro-rata amortisation of tranches, subject to specific performance conditions.

Marjut Falkstedt, CEO of the EIF, praised the transaction as a model for sustainable finance:

“This securitisation operation is a good example of how innovative financing methods can help the transition to a greener and more sustainable future. The agreement with Cetelem will make loans available to households so they can invest in improving the energy efficiency of their homes and become key players in combating global warming.”

Driving Inclusive and Responsible Consumption

María Ruiz-Manahan, CEO of BNP Paribas Personal Finance Spain, expressed her satisfaction with the agreement, stating:

“This agreement will enable both our clients and commercial partners to benefit from better financing conditions, contributing to more inclusive and responsible consumption models. Thanks to this operation and EIB support, BNP Paribas Personal Finance Spain, through Cetelem, reinforces its position in financing solar panels and sustainable solutions for households, aligned with our company’s purpose.”

A Blueprint for Future Climate-Finance Collaborations

This groundbreaking transaction sets a precedent for how public and private sectors can collaborate to address pressing climate challenges through innovative financial instruments. By sharing risk and enhancing credit through synthetic securitisation, the EIB Group and Cetelem are creating a scalable model that can unlock vast new investments in the green economy.

With climate action and inclusive finance at the heart of its mission, the EIB Group continues to pioneer initiatives that drive sustainable development across the European Union and beyond. The current agreement not only supports environmental goals but also exemplifies how capital markets can be harnessed to support citizens directly in their journey toward greener living.