EIB to provide €20m loan to support affordable housing in Poland

WCN Editorial Team 15 Sep 2020 EUROPE BUILDINGS

EIB to provide €20m loan to support affordable housing in Poland

The European Investment Bank (EIB) has agreed to provide a loan of PLN85m (about €20m) to two city-based housing firms for the construction and renovation of social and affordable housing units in Szczecin, Poland.

The Szczecin loan includes two financing parts. EIB has signed a loan agreement worth up to PLN58.25m (€13.7m) with Szczecińskie Towarzystwo Budownictwa Społecznego (STBS).

It has also signed a loan deal, worth up to PLN26.25m (€6.1m), with Towarzystwo Budownictwa Społecznego Prawobrzeże (TBSP).

The EIB financing will be used for the construction and refurbishment of 250 social and affordable housing units, of which 169 will be new homes and 81 will be renovated units. The loan will also be used to develop associated underground parking facilities.

According to the bank, the project is aimed at restoring the historic part of the city. It will also encourage a social mix and promote innovative energy-efficient solutions in parts of the housing stock.  

The operation is backed by EFSI and partly benefits from the Natural Capital Financing Facility.

The development of energy-efficient dwellings will help the project to generate savings of more than 3,200 GJ per annum. The project is expected to resolve on-street parking in the city and reduce Szczecin’s energy consumption.

Szczecin is the second Polish town to receive a loan from EIB to finance a municipal development plan. Before Szczecin, the bank had signed two loans in this sector with two municipal companies in Poznań.

EIB vice-president Teresa Czerwińska said: “This is the first EIB loan to the housing companies of the City of Szczecin and I am pleased that it will help to tackle two problems faced by the affordable and social housing sector: a decreasing housing stock and deteriorating quality due to ageing.

“The affordability and social fabric of our cities is at the core of the EU bank’s urban agenda. Szczecin is the second city in Poland to receive our support in this sector and will not be the last.

“I am also delighted that a small yet important part of the overall EIB financing is for the first time taking advantage of the NCFF, a joint instrument of the EIB and the European Commission that specifically targets green, innovative urban solutions.”

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The EIB loan will be used for the construction and refurbishment of 250 social and affordable housing units. (Credit: City of Szczecin/press office)

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