TOIVO - GREEN LOAN

The project will finance new high-energy performance residential constructions, in line with the national strategy to develop low-energy consumption buildings across Finland.

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.

Given the focus of the operation on the construction of new and affordable high energy performance residential buildings, the underlying investments will support the EU's and Bank's priority in the energy sector (energy efficiency and renewable energy) and the EIB's 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 Finland's 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 Promoter's investment pipeline of energy efficient buildings. The EIB loan will diversify the borrower's funding sources and provide a loan tenor for senior financing, which is not available from commercial sources at comparable terms. The EIB loan's flexible disbursement features provide further benefit to the Promoter in sequencing construction related cash outflows in an optimal manner. The Bank's 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.

Given the relative scale, location and nature of the project in built-up urban areas, all of the buildings are deemed not to have any significant negative environmental or social impact. Exceptionally, a building may fall under Annex II of the green construction of the Environmental Impact Assessment (EIA) Directive 2011/92/EU (as amended by the Directive 2014/52/EU). In such cases, the EIB will require the promoter to act according to the provisions of the EIA Directive leaving it to the competent authority to decide in line with the Directive whether an EIA is required . All relevant permits, public consultations and authorisation processes will be further reviewed during appraisal, including any mitigation measures to be taken. In line with the Energy Performance of Buildings Directive (EPBD) 2010/31/EU, after the project completion, the new high-energy performance buildings will reduce energy consumption and pollutant emissions, by going beyond the current near-zero energy building regulation.

The promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions. However, if at the project appraisal, the EIB were to conclude that the promoter is subject to the EU public procurement legislation then the Bank would duly inform the Commission Services and would require the promoter to apply those rules.