The European Investment Bank Group (EIBG) signed its first synthetic securitization transaction with Inbank, an Estonian financial technology company, to back solar panel loans for private individuals in Poland. This transaction, Inbank's first securitization, will enable the bank to provide up to PLN 701 million (160 million Euros) in new lending over three years to individuals installing solar panels and heat pumps.
European initiative for more green energy in private homes in Poland
EIB Vice-President Teresa Czerwińska highlighted that this agreement supports the energy transition in Poland, helping private individuals with green investments. It is the EIB-Groups first fully green InvestEU securitization in Poland, which demonstrates the EIB and EIF's (European Investment Fund) initiative to maximizing the impact of green energy investments.
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Shared risk burden
Under the agreement EIF offers protection on the senior tranche, valued over PLN 549 million, half of which is counter-guaranteed by the EIB. EIF also protects over PLN 76 million of the riskier mezzanine tranche, which is counter-guaranteed by the European Commission’s InvestEU program. Finally, the junior tranche of around PLN 10 million is retained by Inbank. The structure features synthetic excess spread and pro-rata amortization of the senior and mezzanine tranches, subject to performance triggers. EIF Chief Executive Marjut Falkstedt said, “We’re pleased to partner with Inbank on their first securitization. This agreement will inject new funding into Poland’s economy for sustainable investment and has a direct impact on individuals.” A securitization is a capital relief instrument that transfers part of the credit risk from a loan portfolio to the protection seller, allowing the buyer to lend more. In a synthetic securitization, the buyer retains the portfolio on their balance sheet.
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Empowering private households for the energy transition
Inbank’s new offering targets the purchase of solar panels and heat pumps for private households in Poland, projects that reduce CO2 emissions, improve air quality, support climate mitigation, and contribute to REPowerEU goals for energy autonomy and a green transition.
Background Information on the mentioned organisations:
The European Investment Bank (EIB) is the EU’s financial institution, owned by its 27 member states. It provides long-term financing for projects that boost competitiveness, innovation, sustainability, cohesion, and a fair transition to climate neutrality. In 2023, the EIB Group granted a total of €88 billion in new financing to more than 900 projects, of which €49 billion was earmarked for green investments.
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The European Investment Fund (EIF) is part of the EIB Group and supports Europe’s Small and Medium Enetrprises (SMEs) by improving access to finance through selected intermediaries like banks, leasing firms, and equity funds.
The InvestEU programme boosts EU funding by leveraging private and public investment for sustainable growth. It supports key priorities like the Green Deal and digital transition, streamlining EU financial instruments. Backed by a €26.2 billion guarantee, it aims to mobilize at least €372 billion in investment.
Inbank is an EU-licensed fintech connecting merchants, consumers, and financial institutions through its embedded finance platform. Partnering with 6,200 merchants, it manages 881,000+ contracts and operates in seven European markets. Its bonds are listed on Nasdaq Tallinn. (mg)
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