The European Investment Bank and Italy’s Intesa Sanpaolo have signed a €300 million financing agreement to support new social housing and student residences across Italy.
The funding will be channelled through Intesa Sanpaolo’s IMI Corporate & Investment Banking Division, with the bank selecting projects put forward by public and private operators, the EIB announced on Monday.
It said the money will support the construction of affordable housing and student accommodation, with a focus on areas facing higher demographic and university demand.
Gelsomina Vigliotti, an EIB vice-president, stated that the operation was intended to increase the supply of affordable housing for vulnerable groups and for students as demand rises across Europe.
The EIB loan can cover up to 50% of the total cost of each eligible project, with the remaining funding expected to come from other sources and promoters’ own resources.
The agreement could unlock total investment of around €600 million.
How the funding will be delivered
Intesa Sanpaolo will act as the financial intermediary, making the EIB funds available through dedicated financing for projects that meet European legal requirements and the EIB’s criteria.
Mauro Micillo, chief of Intesa Sanpaolo’s IMI CIB Division, said access to housing and housing services can reduce vulnerabilities affecting families, young people and students.
Over the past five years, the EIB Group has allocated more than €18 billion to social and affordable housing in Europe, supporting the construction of more than 84,000 new homes and the refurbishment of 580,000 homes.
