VIVAWEST and EIB sign EUR 300m loan contract to build 2 300 housing units

The overall investment volume supported by the EU bank loan will amount to almost EUR 630m.

VIVAWEST and the European Investment Bank (EIB) have concluded a loan contract for EUR 300m. VIVAWEST will use the EU bank finance, which is backed by guarantees from the Juncker Plan´s European Fund for Strategic Investments, to build around 2 300 housing units to KfW 55 standard in various towns and municipalities in North Rhine-Westphalia. Almost a fifth of these homes will be for social and affordable housing. VIVAWEST will also use the funds to build student housing and nurseries.

The overall investment volume supported by the EU bank loan will amount to almost EUR 630m. This EIB financing is being provided under the 'Investment Plan for Europe' – also known as the Juncker Plan – under which the EIB and the European Commission are working together as strategic partners. The Juncker Plan provides first-loss guarantees, enabling the EIB to finance more projects, which often carry greater risks. The EIB's financing operations are boosting the competitiveness of the European economy.

EIB Vice-President Ambroise Fayolle, who is responsible for operations in Germany and EFSI, said: "The EIB – the climate bank of the European Union – is taking a leading role in tackling climate change. Only with considerable advances in renewable energies and energy efficiency, in particular, will we be able to succeed at this task. I therefore very much welcome this renewed alliance with VIVAWEST, a renowned and reliable partner with a strong focus on sustainability and above all social responsibility in its business model. The cooperation with VIVAWEST under the Juncker Plan is an excellent example of what the EU can achieve in reducing energy use via improved energy efficiency in the construction sector, all on a socially acceptable basis. This is key for sustainable climate action."

Marianne Thyssen, European Commissioner for Employment, Social Affairs, Skills, and Labour Mobility, said: "Having a place to live is one of the people's basic needs. Housing should be accessible for all, and therefore it needs to be both affordable and adequate. This is also one of the key principles of the European Pillar of Social Rights. I can only applaud this agreement which will create more social and affordable homes in Germany – homes that, to top it off, will be energy efficient and in line with the EU's efforts on the climate action front."

VIVAWEST spokesperson Claudia Goldenbeld added: "New home construction is a significant part of our strategy. VIVAWEST is set to build over 5 700 rental homes in North Rhine-Westphalia by 2023, providing urgently needed affordable housing and playing our part in climate action by delivering energy-efficient buildings. We are very happy with the renewal of our successful partnership with the EIB. The structure of the unsecured funding provides VIVAWEST with a high degree of flexibility in very favorable conditions."