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Austria: EIB Group and Hypo Vorarlberg join forces to support climate investment

    Date: 28 February 2024
  • The EIB Group and Hypo Vorarlberg will finance the construction of new, highly energy efficient residential buildings.
  • The contracts signed between the EIB and Hypo Vorarlberg consist of a synthetic securitisation transaction and a funding transaction.
  • The synthetic securitisation transaction provides significant risk transfer and creates space in Hypo Vorarlberg’s balance sheet, while the funding transaction provides liquidity for new green lending.

The EIB Group, consisting of the European Investment Bank (EIB) and the European Investment Fund (EIF), has provided Hypo Vorarlberg with a €61 million guarantee on the mezzanine tranche of a synthetic securitisation transaction on a €360 million portfolio of loans to small businesses and mid-caps mainly originated in Austria.

The significant risk transfer operation will provide capital relief to create space in Hypo Vorarlberg’s balance sheet and enable the Austrian bank to undertake new lending in support of new highly energy efficient residential buildings. The guarantee has been fronted by the EIF and counter-guaranteed by the EIB for the entire amount. The transaction is structured with a two-year replenishment period.

The transaction underlines EIB Group’s firm commitment to the field of synthetic securitisation in Austria, expanding cooperation to support energy efficiency investment and thereby the green transition.

The EIB has also provided a €50 million loan to Hypo Vorarlberg for investments undertaken by small and medium-sized companies (SMEs), mid-caps and private individuals. Companies with up to 3 000 employees will be able to apply for long-term loans at preferential rates through Hypo Vorarlberg.  

The operation will make it easier for Austrian and German SMEs and mid-caps to access finance. Due to their size, these companies would otherwise receive less favourable financial support.

The loan will also finance the construction of new, high energy performance residential buildings. The construction of new buildings and building refurbishments generates local economic activity and helps create jobs. These projects will be implemented in Austria and Germany until the end of 2026.

EIB Vice-President Thomas Östros, who oversees operations in Austria, said, “We are pleased to be working with Hypo Vorarlberg, a long-standing partner of the EIB, in supporting the construction of new highly energy efficient residential buildings. This is fully in line with EU and EIB climate action objectives. The cooperation will also support small and mid-sized companies in Austria and Germany in their sustainable transformation, by providing long-term loans on beneficial terms. Together, we are promoting greater energy efficiency and increased investments in the real economy.”

EIF Chief Executive Marjut Falkstedt said: “We are glad to cooperate with Hypo Vorarlberg to support Austria’s real economy in its sustainable transformation, by providing medium-sized companies with dedicated green financing. Together, we are promoting the expansion of renewable energy and greater energy efficiency in the residential housing sector, supporting the shift away from fossil fuels.”

Chairman of Hypo Vorarlberg’s Managing Board Michel Haller added: “I am very pleased about the once again very successful cooperation with the EIB and EIF. Both the long-term funds provided by the EIB and the further strengthened capital base due to the guarantee agreement will help the bank to support the regional economy as well as the green transition.”

Background information


The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs.

All projects financed by the EIB Group are in line with the Paris Climate Agreement. The EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation and adaptation, and a healthier environment.

Approximately half of the EIB's financing within the European Union is directed towards cohesion regions, where per capita income is lower. This underscores the Bank's commitment to fostering inclusive growth and the convergence of living standards.

Hypo Vorarlberg

Hypo Vorarlberg Bank AG (Hypo Vorarlberg for short) is headquartered in Bregenz. As the entrepreneurial bank from Vorarlberg, it offers corporate and private customers the best possible consulting. 

Hypo Vorarlberg was founded in 1897 by the Vorarlberg state parliament and converted into a public limited company in 1996. The majority shareholder is Vorarlberger Landesbank-Holding (76.8732%), with a banking consortium from Baden-Württemberg (Landesbank Baden-Württemberg/Landeskreditbank Baden-Württemberg Förderbank) holding the remaining shares. With total assets of around €15 billion and over 700 employees, the bank is the largest single institution in Vorarlberg and has been one of Austria's leading banks in terms of earnings for years. In addition to the branches in the core market of Vorarlberg, there are further locations in Vienna, Graz, Wels, Salzburg and St Gallen (Switzerland).


Press contacts

Donata Riedel, d.riedel@eib.org, tel.: +49 30 590 04 79-0, mobile: +49 151 14659021
Website: www.eib.org/press — press@eib.org

Hypo Vorarlberg Bank AG

Sabine Nigsch-Gaethke, sabine.nigsch-gaethke@hypovbg.at, tel.: +43 (0) 50 414 1107,

Website: www.hypovbg.at

Note: Following the recent withdrawal of the United Kingdom from the European Union, we are updating the relevant EIF.org pages.


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