Release date: 28 November 2024
Promoter – Financial Intermediary
GRUPO ILUNION SLLocation
Description
The project will finance the promoter's investments in energy efficiency refurbishments in industrial laundries and buildings.
Additionality and Impact
The project is in line with the InvestEU Annex II objective of supporting the development of the energy sector in accordance with the Energy Union priorities.
As this operation focusses on energy efficiency ("EE") the underlying investments will support the EU's and Bank's priority in the energy sector (energy efficiency) and the EIB's climate action objectives, as the whole operation (100%) will contribute to climate change mitigation objectives.
The implementation of the EE projects financed under this operation will contribute to the achievement of Spain's 2021-2030 National Energy Climate Plan that envisages ambitious targets of carbon emissions' abatement. In turn, it supports the EU and national targets for EE and contributes to the security of energy supply and environmental objectives. The operation is fully aligned with the "EU Energy Performance of Building Directive - EU/2010/2031" as amended in 2018 and with the "Energy Efficiency Directive", as well as the "Green Deal Renovation Wave" and "REPowerEU".
In addition, the operation supports the Bank's mandate to the EU's regional policy as part of the schemes are expected to be in less developed regions (approximately 57% of the total investment cost).
The operation meets an existing demand for energy efficient investments in the hotels and laundry sector in Spain. The Project tackles multiple market failures. EE projects, through energy savings, reduce carbon emissions and air pollution, and enhance comfort and air quality in buildings.
Grupo Ilunion (the "Promoter") is deemed to be capable of implementing the operation considering its overall experience. In addition, EIB trough the InvestEU Advisory Hub's Technical Assistance is providing specific technical assistant for the preparation and monitoring of the energy efficiency investments in industrial laundries. The operation is expected to be both financially and economically viable, with excellent economic rate of return and social broader benefit.
The Bank will support the Promoter with access to long-term financing with customised and flexible financial terms and conditions, which better mirror the economic life of its investments. In addition, the EIB loan will provide a signalling effect on the soundness and quality of the Project and the Promoter, which expects to speed up the crowding-in of other commercial financiers.
The Project would not have been carried out (to the same extent) by the EIB without the InvestEU support.
Objectives
The aim is to reduce energy consumption in industrial laundries and improve energy performance in renovated buildings mainly through major renovations implementing several energy efficiency measures. The project will also contribute to climate action mitigation by reducing greenhouse gas emissions.
Sector(s)
- Industry - Construction
Proposed EIB finance (Approximate amount)
EUR 60 million
Total cost (Approximate amount)
EUR 80 million
Environmental aspects
The project will contribute to energy efficiency and thus reduce CO2 and air pollution emissions. Part of the energy efficiency investments will take place in existing industrial laundries without any significant impact on capacity or current operation. The investments related to energy efficiency renovations will be implemented in existing buildings and (if any) only minor negative environmental impacts (noise, dust) might be expected, impacts usually mitigated by proper works management. Therefore it is most likely that none of the projects will require an Environmental Impact Assessment (EIA) under the EIA Directive 2011/92/EU (as amended by Directive 2014/52/EU). The EIB will nevertheless review during the project appraisal whether any of the investments could fall under Annex II of EIA Directive, as well as the compliance with applicable EU environmental legislation.
Procurement
As a private company the promoter is not subject to EU rules on public procurement or concessions.
Status
Signed - 21/11/2024
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).