EIB loans SEK 3 Bln to Hemsö for energy efficient social infrastructure
- The SEK 3 billion financing will support the construction of and refurbishment to NZEB standards of energy efficient social infrastructure. - Construction plans include healthcare and research buildings, elderly care homes and educational facilities.
The European Investment Bank (EIB) has signed a SEK 3 billion (EUR 292 million) loan agreement with Hemsö Fastighets AB. The Swedish property owner will use the long-term (up to 25 years) financing facility to build healthcare and research infrastructure, elderly care homes and educational facilities, all to nearly-zero-energy-building (NZEB) standards. The premises will be located in the main Swedish cities.
Alexander Stubb, vice-president of the EIB, commented: “In the Nordics there’s no way around it; conserving energy and heat is a major issue, so we are very pleased to support Hemsö with this project. Public buildings are responsible for a large part of our CO2 output, and thus making them more energy efficient is an important step in mitigating their carbon footprint.”
The facility will be unsecured and will provide Hemsö with a sustainable, flexible and affordable source of external funding. As most of the services delivered in Hemsö’s premises are taxpayer-funded, the financial added value offered by the EIB will ultimately benefit the Swedish citizens.
“We are thrilled about initiating this long-term cooperation with the European Investment Bank. The EIB's focus on green and socially relevant investments fits well with Hemsö’s business model for developing sustainable social infrastructure. This new facility diversifies the company's financing and allows us to continue focusing on long-term funding for the company's planned projects.” said Jonas Rosengren, Hemsö’s Group Treasurer.
The demand for social infrastructure is expected to rise in Sweden, not only due to demographic reasons, but also because of ongoing urbanisation: Swedish cities are among EU’s fastest growing cities. The project supports national and European targets for energy efficiency and contributes to CO2 emission reduction, thus supporting climate change objectives as well as diversification of energy supply objectives in the EU.
The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. In 2017 alone, the Bank made available a record EUR 2.34 bln in loans for Swedish projects in various sectors, including research & development, industry, nearly-zero-energy-buildings and telecommunications.
The EIB is the European Union's bank. We are the only bank owned by and representing the interests of the European Union Member States. We work closely with other EU institutions to implement EU policy. We are the world’s largest multilateral borrower and lender. We provide finance and expertise for sustainable investment projects that contribute to EU policy objectives. More than 90% of our activity is in Europe. But we also are a big investor around the world.
Hemsö is Sweden’s leading owner and developer of properties for social infrastructure. The business model is based on sustainably owning, managing and developing properties for nursing homes, education, health care and the judiciary sector. Hemsö owns around 350 properties in Sweden, Germany and Finland.