BREMEN SOCIAL AND AFFORDABLE GREEN HOUSING

The project will finance the refurbishment and new construction of social and affordable housing for rent in the Federal City State of Bremen.

The project is part of the investment programme 2023-2025.

The Project contributes to the achievement of numerous UN Sustainable Development Goals and is in accordance with the provisions of the new Leipzig Charter for sustainable urban development, and the 2022 Nice Declaration on affordable, sustainable and resilient housing. The implementation of the energy efficiency projects financed under this operation will contribute to the achievement of Germany's National Energy Climate Plan that envisages ambitious targets of carbon emissions' abatement and the implementation of the German Long Term Renovation Strategy. The operation is fully aligned with the EU Energy Performance of Building Directive (EPBD) and with Energy Efficiency Directive (EED). The Project is eligible under the Bank's Urban Lending Review and supports the Bank's lending priority objectives on Energy Efficiency and the transversal objectives on Climate Action (mitigation). The project will increase the supply and quality of social and affordable housing for rent, thereby providing energy efficient housing options for low and medium income households. The Project addresses social inclusion as well as a more equitable access to housing. It will generate positive externalities through an improved provision of housing facilities and it will address sub-optimal investment situations (in relation to energy efficient measures in new buildings) as well as information asymmetries. EIB financing will contribute to social inclusion and sustainable urban development with improvements to the quality and attractiveness of the built environment. The Project is expected to contribute to the provision of high quality and energy efficient buildings, which will also lead to lower operating costs and energy bills for low and moderate-income households.

The loan from the Bank plays a crucial role in supporting GEWOBA's extensive housing investment program and establishing a stable long-term funding foundation. The Bank will provide an unsecured loan, which will be effectively subordinated to the borrower's standard mortgage loans and will thus help the borrower to optimize its asset encumbrance levels with a view towards mobilising traditional mortgage funding for its ambitious investment programme. It will also enable the borrower to access funds over an extended period matching the project implementation period, while the repayment structure aligns with the long-term nature of these investments. Moreover, the loan offers a favourable fixed interest rate, effectively reducing the borrower's funding expenses and contributing to the goal of maintaining affordable rents.

Compliance with the relevant EU Directives will be verified during appraisal: EU Environmental impact Assessment (EIA) Directive 2011/92/EU, EU Strategic environmental assessment (SEA) - Directive 2001/42/EC, EU Habitats Directive 92/43/EEC and EU Birds Directive 2009/147/EC. Applicable energy efficiency requirements in line with the EU Directive on the Energy Performance of Buildings 2010/31/EU will also be further assessed during appraisal.

The promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions.