Italy: EIB Group and Findomestic agreement: €250 million energy efficiency of new loans for families and households

• This EIF (European Investment Fund) synthetic securitisation operation, involving a mezzanine guarantee of around €94 million, incorporates a counter-guarantee from the EIB.
• The EIB Group is providing a 100% green support, for the first time dedicated to families and households in Italy.
• In the past five years, the EIB Group and the BNP Paribas Group have signed operations totalling almost €400 million in Italy.

The EIB Group support will help families and households on their energy-efficient and alternative energy production projects for their homes. These are the main objectives of this synthetic securitisation operation announced today by EIB Vice-President Gelsomina Vigliotti and CEO and General Manager of Findomestic Banca Marco Tarantola.

This agreement with Findomestic maintains the structure and operational nature of the EIB Group's commercial ties with the BNP Paribas Group in Italy and adds a new and unprecedented public policy perspective to the EIB's status with the financial market in Italy. This EIB Group guarantee is wholly dedicated to green projects for families and households, which will benefit from lower interest rates on Findomestic loans for the purchase and installation of energy-efficient equipment and the production of solar energy for domestic use across Italy.

In concrete terms, the agreement's structure comprises a synthetic securitisation transaction, not involving the sale of assets, on €855 million portfolio of retail performing loans originated by Findomestic. The European Investment Fund (EIF, part of the EIB Group) is issuing a guarantee on the mezzanine tranche to the tune of around €94 million, with a counter-guarantee from the EIB. This mechanism allows Findomestic to free-up regulatory capital and enable it to disburse new loans according to environmental sustainability criteria defined with the EIB, for up to €250 million.

This transaction further consolidates the relationship between the EIB Group and the BNP Paribas Group in Italy. This is the fourth initiative concluded in 2024 between the two institutions, following the agreement signed in July between the EIB and BNL, allocating €400 million to provide new liquidity to companies, including a 25% green component.

EIB Vice-President Gelsomina Vigliotti said:"A first in Italy, the EIB Group is investing directly in lending to Italian households, with the aim of reducing the costs of financing energy-efficiency projects and producing solar energy for domestic use. This new initiative is a model that we hope to be able to replicate further in other parts of Italy, helping to promote the energy transition of families and households and strengthening the link between the EIB, Europe and people in the country."

"Together with the EIB Group, we have implemented a unique operation in Italy that allows us to share concretely with our customers and partners the sustainability objectives that, as a bank, we have been pursuing for years. Thanks to this agreement, Findomestic will support families and households to make energy-efficient purchases helping to reduce the impact on the environment and thus contribute to the ecological transition and forge a more sustainable future," said Marco Tarantola, CEO and General Manager of Findomestic Banca.

"Through our partnership with Findomestic, the EIF is excited to open new avenues for Italian families to invest in sustainable solutions. This initiative not only makes financing more accessible but also fosters innovation in energy efficiency and renewable energy at the household level." Said Marjut Falkstedt, EIF Chief executive.

Background information

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality. The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs. In the last five years, the EIB Group has provided more than €58 billion in financing for projects in Italy.All projects financed by the EIB Group are in line with the Paris Climate Agreement. The EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group's annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment. Around half of the EIB's financing within the European Union is directed towards cohesion regions, where per capita income is lower.

Findomestic Banca serves over 3 million customers, offering lending, insurance, savings and daily banking solutions thanks to dedicated current accounts. Findomestic is active throughout Italy, motivated by the principles of social responsibility, and promoting a sustainable and responsible approach to lending in order to develop a solid long-term relationship with customers, partners and all stakeholders. Findomestic is wholly owned by BNP Paribas Personal Finance and is part of the BNP Paribas Group, which is active in more than 70 countries with over 189 000 employees, of whom over 146 000 are based in Europe.