First InvestEU project in Germany: €60 million for construction of affordable and energy-efficient flats

The European Investment Bank (EIB), backed by the new InvestEU programme, is lending €60 million to the municipal housing provider hanova to support their construction of social and affordable housing in Hanover, Germany, which will also meet the EU’s high energy-efficiency standards. The project involves the construction of 640 new apartments for rent, of which 232 are social and 408 are affordable housing units. This project is the first one in Germany to receive a loan by the EIB under the new InvestEU programme. It will help to address the demand for affordable housing in Hanover, thereby contributing to social inclusion, while helping to reduce CO₂ emissions of buildings and support Hanover’s efforts to become climate neutral. Valdis Dombrovskis, Executive Vice-President for an Economy that Works for People, said: “This agreement is an excellent example of how InvestEU can contribute to achieving our shared social and green objectives while having a positive and meaningful impact on the lives of our citizens. This is the first project supported by InvestEU in Germany and will make 640 new social and affordable homes available in Hanover that will meet high energy efficiency standards.” The InvestEU programme provides the EU with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for EU policy priorities, such as the European Green Deal and the digital transition. The InvestEU Fund is implemented through financial partners who will invest in projects using the EU budget guarantee of €26.2 billion. The entire budgetary guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.