Investment & Fund Management
the European Investment
Full Credential Description
The European Investment Bank (EIB) and its subsidiary, the European Investment Fund (EIF), have collaborated with the German green tech company Enpal to create Europes first public solar asset-backed securities (ABS) transaction, valued at 100 million. This innovative financing solution addresses the high acquisition costs that have historically hindered homeowners from adopting solar energy. Enpal, which offers a comprehensive renewable energy solution including solar panels, battery systems, and electric vehicle chargers, aims to make clean energy more accessible through this new financial instrument.
In this transaction, the EIB acted as an anchor investor, contributing 50 million, while the EIF provided an additional 50 million in guarantees. This structure allows Enpal to refinance residential solar loans, thereby facilitating the sale of 8,500 photovoltaic (PV) systems to households. The ABS transaction involved Enpal selling 240 million of its claims against customers to a Special Purpose Vehicle (SPV), which then issued the first residential solar ABS bond in Europe. This model not only opens a new asset class for private solar systems but also aims to establish a European green securitisation market, making renewable energy solutions more affordable for homeowners.
The benefits of this transaction are significant. By attracting private investors, the EIB Group supports Enpal in enhancing its financing solutions for clients. The interest rates paid to the EIB will be partially returned to Enpal, enabling the company to offer even more attractive financing options. This initiative is expected to contribute to the broader goal of increasing the adoption of renewable energy technologies in residential homes across Germany and the EU, ultimately fostering climate action and sustainability.