The CEB grants the ICF a loan of 100 million euros to finance social housing projects in Catalonia. This CEB loan will allow Catalonia's social housing model to grow.
Today the Development Bank of the Council of Europe (CEB) disbursed 50 million euros in favor of the Catalan Finance Institute (ICF). This is the first tranche of a loan of 100 million euros that the CEB and the ICF signed on May 31 to finance social housing in Catalonia. The main objective of the loan is to help expand the Catalan social housing stock by renovating or building new flats for vulnerable people who could not otherwise access housing.
It should be noted that the CEB loan has an InvestEU guarantee and is expected to mobilize up to 200 million euros for the creation of social rental housing, which is a strategic priority of Catalonia for the year 2023, in order to fill a void of financing that are not currently covered by private financial institutions.
This loan is another milestone of the ICF as a public financial institution in projects for the acquisition and promotion of social rental housing to promote access to vulnerable people.
ICF social housing lines
The CEB loan will provide long-term financing to the current ICF credit lines:
- ICF Social Housing Acquisition which provides financing to social entities and municipalities for the purchase of social rental housing.
- ICF Social Housing Construction which provides financing to social housing developers to build social housing units.
About the ICF
The ICF is Catalonia's public promotion bank and, as such, its main mission is to promote the growth of companies and entities. Through loans and capital, it finances relevant and transformative projects, emphasizing the green transition, reindustrialization and social housing. The entity often acts as a complement to commercial banking and offers long repayment periods with the objective of facilitating the return of the debt. Since 2014, it has been a member of the European Association of Public Banks (EAPB), which brings together most the banks and public financial entities operating in Europe.
About the Development Bank of the Council of Europe
The Council of Europe Development Bank (CEB) is a multilateral development bank whose sole mission is to promote social cohesion throughout Europe. The CEB finances investment in social sectors, including education, health and affordable housing, and focuses on the needs of vulnerable people. Borrowers include governments, local and regional authorities, public and private banks, non-profit organizations, among others. As a multilateral bank with an excellent credit rating, CEB finances itself in the international capital markets. It approves projects in accordance with strict social, environmental and governance criteria, and provides technical assistance. In addition, the CEB receives funds from donors to complement its activities. The CEB has forty-three member states. At first it was created in 1956 by eight of the fifteen member states that at that time formed the Council of Europe as a fund for refugees. The CEB is the oldest multilateral development bank in Europe and is legally and financially separate from the Council of Europe.