The EIB Group (European Investment Bank, EIB, and European Investment Fund, EIF) and BNP Paribas announced a “green securitization” agreement today, aimed at financing home energy efficiency investments and supporting the transition to climate neutrality.

Under the new agreement, the EIB Group has invested €400 million from the EIB and €50 million from the EIFin senior and mezzanine tranches of asset-backed securities backed by a consumer portfolio originated by BNP Paribas Personal Finance. Other private investors will invest €24 million in the junior tranches.

According to BNP Paribas, the transaction will enable the bankto supply new lending of around €627 million to households in France over a three-year period. Financing will exclusively support energy efficient housing equipment, notably high-energy performance boilers, insulation windows, and installation of solar panels. Altogether, these projects will contribute to the reduction of CO2 emissions.

EIB Vice-President Ambroise Fayolle said:

“The EIB Group and BNP Paribas are joining forces to facilitate access to energy-efficient housing equipment for individuals. Supporting the development of credit with our banking partners in France to encourage household investments that contribute to the fight against global warming is a key mission for the EIB Group, and I’m delighted that this innovative financing scheme can make its contribution.”  

The structure, derived from a €500 million portfolio composed of consumer loans originated by BNP Paribas Personal Finance, was structured by BNP Paribas Personal Finance and optimized to provide capital release for additional lending and funding. BNP Paribas CIB acted as strategic advisor on the transaction.

Charlotte Dennery, CEO of BNP Paribas Personal Finance, said:

“This transaction is a further illustration of BNP Paribas Personal Finance’s commitment to the ecological transition of households. Today, we are financing the energy transition of housing up to €4 billion, that is nearly 4% of our outstanding loans.”