Release date: 28 December 2021
Promoter – Financial Intermediary
MERLIN PROPERTIES SOCIMI SALocation
Description
Financing of investments in energy efficiency refurbishments carried out by the Promoter.
Additionality and Impact
The proposed operation aims to finance energy efficiency (EE) and small building integrated renewable energy projects (mainly PV) in commercial buildings in Spain and to a small extent in Portugal. Therefore, the project will support the EU and Bank's priority in the energy sector and the EIB's climate action objectives.
The EU Renovation Wave Strategy set out ambitious targets for building renovations. In general, EE investments in buildings suffer from a chronic lack of investments and relatively high transaction costs due to their fragmentation and small size. In addition, EE projects reduce carbon and air pollution externalities. These market failures are typically not internalised in the investment rationale of private financiers, who do not have sufficient flexibility nor scale.
Moreover, given the labour-intensive nature of the building sector, the project will support the economic recovery after the Covid-19 crisis, fostering economic growth and qualified employment in the green sectors.
The loan will be an EIB Green loan. It is expected to add value by offering a long maturity and flexible terms & conditions (e.g Different interest rates modalities, long availability period, multiple disbursements ).
Objectives
By supporting energy efficiency investments and small renewable energy projects in buildings, the project will reduce carbon and air pollution, deliver health benefits through improved air quality and positive social impact through job creation.
Sector(s)
- Services - Real estate activities
Proposed EIB finance (Approximate amount)
EUR 45 million
Total cost (Approximate amount)
EUR 60 million
Environmental aspects
Given the scale, location and nature of the works in built-up urban areas, all of the works are deemed not to have any significant negative environmental or social impact. Exceptionally, a work may fall under 2014/52/EU amending the EIA Directive 2011/92/EU. In these cases, the Bank will require the Promoter to act according to the provisions of the aforementioned Directive as transposed into national law leaving it to the competent authority to decide in line with the Directive whether an environmental impact assessment (EIA) procedure is needed or not. The project is in line with the Bank's priority lending objectives for energy efficiency (EE) and renewable energy (RE) and supports the Climate Action objective (100%).
Procurement
The Promoter has been assessed by the EIB as being a private company not subject to EU rules on public procurement or concessions. However, if after the project appraisal, the EIB were to conclude that the Promoter is after all subject to EU public procurement legislation (Directive 2004/17/EC), then the Bank would require the Promoter to ensure that contracts for the implementation of the project have been tendered in accordance with the relevant applicable EU procurement legislation (Directive 2004/17/EC, where applicable, as well as Directive 92/13/EEC) as interpreted by the Court of Justice of the EU, with publication of tender notices in the Official Journal of the EU, as and where required.
Status
Signed - 16/12/2021
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).