EIB grants 300 million for affordable and energy efficient housing in Sweden
Eight residential properties will be constructed in 5 big cities
- October 03, 2019 17:50
- Monika Dimitrova
The European Investment Bank (EIB) announced that it has signed a 300 million euros financing facility agreement with Heimstaden Bostad AB, a Swedish residential company. Thanks to the financial support package the company will be able to develop 8 residential properties in 5 big Swedish cities, resulting in about 3,300 new affordable homes to become available for rent. The project is part of the Juncker Plan’s European Fund for Strategic Investments. The EIB will provide the financial support on an unsecured basis, available under a period of 3 years. Each loan will have a tenor of up to 10 years, currency in Swedish krona or euros with floating or fixed rate.
The Swedish cities are among the fastest growing cities in the European Union and the demand for social infrastructure is on the rise. The reasons are demographic as well as due to the urbanisation. The financial support will make large-scale construction of affordable housing far more feasible, thus addressing the severe shortage of residential units in the biggest cities in Sweden. Part of the investments will be allocated for community services such as a new library and homes dedicated to elderly care. The new affordable housing units will also have high-energy performance standards.
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