Investment & Fund Management
The European Investment Bank
Full Credential Description
The European Investment Bank Group (EIBG) partnered with Inbank, an Estonian financial technology company, to execute its first synthetic securitization transaction in Poland, backed by solar panel loans to private individuals. This innovative agreement allows Inbank to extend PLN 701 million (over 160 million) in new financing over the next three years specifically for individuals looking to install solar panels and heat pumps. The initiative is part of a broader effort to support the green transition in Poland, aligning with the EU's climate goals.
The tailored solution involved a complex financial structure where the European Investment Fund (EIF) provided protection on the senior tranche worth over PLN 549 million, with half counter-guaranteed by the EIB. Additionally, EIF covered more than PLN 76 million of the riskier mezzanine tranche, which is also counter-guaranteed by the European Commissions InvestEU programme. The junior tranche, which carries the highest risk, is retained by Inbank. This structure not only facilitates significant new funding for sustainable investments but also enhances Inbank's capital position, enabling them to offer more competitive loan terms to customers.
As a result of this collaboration, Inbank is positioned to play a crucial role in reducing CO2 emissions and improving air quality in Poland, contributing to the EU's REPowerEU targets aimed at increasing energy supply diversity and accelerating the green transition. The partnership exemplifies a successful three-way cooperation between the EIB, EIF, and the European Commission, leveraging innovative financial instruments to drive sustainable growth and investment in the region.