The significant risk transfer operation will provide capital relief to create space in Hypo Vorarlberg’s balance sheet and enable the Austrian bank to undertake new lending in support of new highly energy efficient residential buildings. The guarantee has been fronted by the EIF and counter-guaranteed by the EIB for the entire amount. The transaction is structured with a two-year replenishment period.
The transaction underlines EIB Group’s firm commitment to the field of synthetic securitization in Austria, expanding cooperation to support energy efficiency investment and thereby the green transition.
The EIB has also provided a €50 million loan to Hypo Vorarlberg for investments undertaken by small and medium-sized companies (SMEs), mid-caps and private individuals. Companies with up to 3 000 employees will be able to apply for long-term loans at preferential rates through Hypo Vorarlberg.
The operation will make it easier for Austrian and German SMEs and mid-caps to access finance. Due to their size, these companies would otherwise receive less favorable financial support.
The loan will also finance the construction of new, high energy performance residential buildings. The construction of new buildings and building refurbishments generates local economic activity and helps create jobs. These projects will be implemented in Austria and Germany until the end of 2026.