| Project Detail |
The project will finance new high-energy performance residential constructions, in line with the national strategy to develop low-energy consumption buildings across Finland. Additionality and Impact Given the focus of the operation on the construction of new and affordable high energy performance residential buildings, the underlying investments will support the EUs and Banks priority in the energy sector (energy efficiency and renewable energy) and the EIBs climate action objectives. Finland has implemented the Nearly-Zero Energy Building standard. However, the building construction norms are not yet aligned with Net-Zero standard, and there is room for further efficiency improvements. This operation will contribute to the achievement of Finlands Integrated Energy and Climate Plan targets. Through energy savings, energy efficiency projects reduce carbon emissions and air pollution, increase comfort, air quality in the buildings, and reduce dependency on energy imports, social and public benefits that are not fully internalised by private investors. The project has a very good Economic Rate of Return and will generate good social benefit. In addition with the sub-projects in Tampere and Turku, the project will contribute to Cohesion policy objective. The EIB support to this operation is expected to provide tangible financial benefit, positively contributing to the implementation of the Promoters investment pipeline of energy efficient buildings. The EIB loan will diversify the borrowers funding sources and provide a loan tenor for senior financing, which is not available from commercial sources at comparable terms. The EIB loans flexible disbursement features provide further benefit to the Promoter in sequencing construction related cash outflows in an optimal manner. The Banks support would have a positive signalling effect on other financiers, crowding-in other debt financing to this project as well as to other growth capex financing needs of the Promoter. Objectives The aim is to support the construction of green homes. The projected energy performance will be significantly lower than the level required in Finland for residential buildings. Sector(s) Services - Real estate activities Proposed EIB finance (Approximate amount) EUR 60 million Total cost (Approximate amount) EUR 109 million |
