EIB And ICF Sign €163 Million Loan To Build Affordable, Energy-Efficient Housing In Catalonia

The European Investment Bank (EIB) and the Institut Català de Finances (ICF) have signed a €163 million loan agreement to fund the construction of affordable rental housing with high energy efficiency standards in Catalonia, Spain. This marks the first tranche of a total €490 million loan backed by the European Union’s InvestEU programme.

The investment will finance the construction of over 4,300 social rental housing units, benefiting more than 10,000 people. These homes, expected to be completed by mid-2028, aim to address the shortage of affordable rental housing, reduce energy consumption and costs for tenants, and cut greenhouse gas emissions. This initiative aligns with the EIB’s strategic priority to strengthen Europe’s social infrastructure by funding essential sectors such as healthcare, education, and housing.

“Access to affordable and environmentally friendly housing has become a basic necessity in many European regions and is one of the EIB’s strategic priorities,” said Gilles Badot, director of EIB operations for Spain and Portugal. “We are delighted to join forces once again with ICF in this major operation to provide the people of Catalonia with energy-efficient homes tailored to their needs.”

Catalonia’s current social rental housing availability stands at just 1.7% of primary residences, highlighting the critical need for this project. Catalonia Region Minister of Economy and Finance, Natalia Mas, emphasized the significance of this operation, noting, “This is a historic operation, not only because it is the largest EIB loan ever agreed with ICF, but also because it addresses a pressing issue: access to housing.”

ICF CEO Vanessa Servera i Planas added, “As a public sector promotional bank, ICF’s strategic focus is on promoting social and affordable rental housing, together with the green transition, reindustrialisation, and support for the primary sector. This EIB loan – and the important support of the Catalan Housing Agency in the form of subsidies for the financial cost of the operations – will enable us to finance more sustainable rental housing projects to guarantee the right to housing in Catalonia.”

The project is expected to foster economic growth and create approximately 6,850 jobs in the construction sector during its implementation. This loan builds on the ongoing financing and advisory partnerships between the EIB Group and ICF, aimed at driving the dual green and digital transition and improving business competitiveness. Recent collaborations include the launch of the Advanced Technology Investment Fund (FITA) in February 2024 and a loan signed in June 2023 to finance small businesses and mid-caps in Catalonia, along with advisory services for sustainable projects.

The EIB is the European Union’s long-term lending institution, owned by its Member States. It finances investments that further EU policy objectives, including competitiveness, innovation, sustainable development, social and territorial cohesion, and the transition to climate neutrality. In 2023, the EIB Group signed €88 billion in new financing, with €11.4 billion directed to projects in Spain, including €6.8 billion for climate action and environmental sustainability.

InvestEU provides long-term funding to support a sustainable recovery in Europe by leveraging private and public funds. It focuses on EU policy priorities, such as the European Green Deal and the digital transition. The programme includes the InvestEU Fund, InvestEU Advisory Hub, and InvestEU Portal, aiming to mobilise at least €372 billion in additional investment through a €26.2 billion EU budget guarantee.