The European Investment Bank Group (EIB) has signed its first synthetic securitization backed by solar panel loans to private individuals with an Estonian fintech company.
The significant risk transfer (SRT) transaction enables Inbank to offer more than €160 million in loans to private individuals in Poland to help them fund solar panels and heat pumps.
An SRT securitization involves a bank or financial institution bundling its loans or assets and selling portions to investors. This process helps distribute the risk of borrower default, reducing the bank’s potential losses.
“The agreement signed with Inbank today touches on an important aspect of energy transition: providing green support to private individuals,” said EIB Vice-President Teresa Czerwińska. “As the EU’s climate bank, we actively support multiple parts of the energy transition puzzle.”
“Our partnership with the EIB Group reinforces our commitment to sustainability while driving growth and innovation, said Inbank’s Management Board Chairman Priit Põldoja. “We at Inbank are proud to lead EIBG’s first entirely green securitization in Poland with InvestEU support, accelerating the transition to renewable energy solutions both in Poland and beyond.”
The deal is one of a growing number of green securitizations in Europe: Norwegian bank DNB recently completed a green SRT securitization focused on zero emissions vehicles and BBVA announced an innovative deal with Dutch pension fund investor, PGGM.
They demonstrate the potential of securitization as an effective tool for helping to finance the huge predicted costs associated with the EU’s aims to make Europe climate neutral by 2050.
