NAVARRA SOCIAL HOUSING II FL

Promoter – Financial Intermediary

NAVARRA DE SUELO Y VIVIENDA SA

Location

• Spain

Description

The project consists of a Framework Loan (FL) comprising the co-financing of new energy efficient social housing units for rent. It also includes the upgrade and refurbishment of existing housing, including but not limited to social housing, with the objective to achieve high-energy performance standards.

Additionality and Impact

The Project is in line with the provisions of the 2022 Nice Declaration on Housing, the 2020 New Leipzig Charter, the EU Urban Agenda, and the EIB Urban Lending Review. Furthermore, it is aligned with the EU Energy Performance of Building Directive and with the Bank's Energy Lending Policy for new buildings. This Project is deemed aligned to the EIB Gender Equality Strategy and Action Plan. Finally, it is compliant to a low carbon and resilient pathway, consistent with the Paris Agreement goals and principles. It will count fully towards the Bank's Climate Action and Environmental Sustainability targets.

The Project will contribute directly to promote progress towards multiple Sustainable Development Goals (SDGs). Furthermore, the Project (89% of the PIC) is expected to fulfil the social sustainability criteria, being thus eligible under the Bank's SAB guidelines.

The Project addresses a number of market failures, in particular the lack of available social housing supply as the market does not sufficiently cater for the demand of low-income people. The Project also addresses sub-optimal investment flows into highly energy efficient and resilient new buildings.

Given the track record of Nasuvinsa as a best in class Promoter for the implementation and operation of social housing projects, together with the evidence of solid demand and its contribution to the socio-economic inclusion of lower-income citizens, this operation can be expected to combine excellent economic and acceptable financial performance for the social housing sector, justifying therefore the Bank's involvement.

The availability of long-term finance for social housing at affordable interest rates is as a key contribution of the Bank, considering the very long-term nature of the investment and its positive impact on overall project cost.

The EIB loan will include flexible drawdown terms and conditions adjusted to the investment horizon of the projects.

The Project was structured as a framework loan as per the advice of the services so that the promoter would gain in flexibility with regards to the schemes to be included in the scope of the operation. Hence, both ad hoc interventions and a continuous dialogue with the promoter are expected. This includes monitoring missions to ensure compliance with disbursement conditions or annual monitoring reports.

Objectives

The aim is to improve social inclusion and integration, as well as the enhancement of the living standards of vulnerable populations, including the reduction of the energy demand through high energy efficient housing.

Sector(s)

• Urban development - Construction
• Industry - Construction

Proposed EIB finance (Approximate amount)

EUR 24 million

Total cost (Approximate amount)

EUR 54 million

Environmental aspects

The compliance with the relevant EU Directives will be verified during appraisal and at allocation stage: Environmental Impact Assessment (EIA) Directive 2011/92/EU as amended by Directive 2014/52/EU, EU SEA Directive 2001/42/EC, EU Habitats Directive 92/43/EEC and EU Birds Directive 2009/147/EC. In addition, EU Directive 2010/31/EU on Energy Performance of Buildings. The level of climate action (adaptation and mitigation) and environmental sustainability measures where relevant, will be assessed during appraisal and at allocation stage.

Procurement

The Bank will require the Promoter to ensure that contracts for implementation of the project will be tendered in accordance with the applicable EU procurement legislation: Directive 2014/23/EU, 2014/24/EU as well as Directive 92/13/EEC or Directive 89/665/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.

Status

Signed - 21/12/2022