Funds given by Spain's Regional Resilience Program are designed to encourage urban expansion and eco-friendly tourist attractions.
The European Investment Bank (EIB) has announced a significant commitment of €230 million to support urban development and sustainable tourism projects in Spain. This funding is part of a larger €640 million investment, allotted through Spain's Regional Resilience Fund and backed by NextGenerationEU resources as part of the country's Recovery, Transformation, and Resilience Plan.
The financing will contribute to the EIB Group's strategic priorities of climate action, environmental sustainability, and strengthening social infrastructure in the European Union. It aims to promote investments in projects that develop cities, foster their green transition, and adapt them to the evolving needs of citizens.
Two financial intermediaries, A&G and Urbania Alpha (operating under the AEXX Capital brand), will channel this funding. A&G will receive €130 million, while Urbania Alpha will receive €100 million. These agreements are part of an innovative EIB instrument to channel EU funding through financial intermediaries, enabling smaller, specialized financial partners to deploy the funds at scale.
The projects being funded will focus on affordable housing, urban renewal, sustainable tourism initiatives across Spain, and other investments in education, healthcare, social infrastructure, clean transport, waste management, and energy efficiency.
A&G will invest in equity, primarily focusing on affordable rental housing and urban renewal projects nationwide. Urbania Alpha, on the other hand, will invest across a range of urban development projects and sustainable tourism initiatives.
The funding is expected to unlock capital that helps cities meet housing needs and develop greener tourism models. The projects will run through December 2030, and individual investments will be capped at around €22 million per project.
This investment is a significant step towards fostering an environmentally sustainable and responsible tourism model by financing sustainable tourism projects. The EIB will monitor that the funds are used in line with the objectives, and the intermediaries will allocate funds according to certain previously defined criteria.
All projects will have to comply with the Do No Significant Harm Principle and be economically and financially viable. The final beneficiaries targeted are private or public-private entities. The maximum allocation per project for Urbania Alpha is €22 million, and the maximum recovery periods are 15 years for equity investments and 20 years for debt.
The investment period runs until December 2030, and both A&G and Urbania Alpha have created dedicated close-ended investment vehicles to channel the funds into eligible projects. A&G will channel €130m through A&G Real Estate Sustainable, and Urbania Alpha will channel €100m through AEXX Impact Investments I.
In conclusion, this €230 million investment represents a significant boost for urban development and sustainable tourism in Spain. It is part of a larger commitment to create a greener, more sustainable future for cities across the European Union.
- The European Investment Bank's €230 million commitment to urban development and sustainable tourism projects in Spain is aimed at promoting investments in projects that develop cities, foster their green transition, and adapt them to the evolving needs of citizens.
- The funding will be channelled through two financial intermediaries, A&G and Urbania Alpha, with A&G receiving €130 million and Urbania Alpha receiving €100 million.
- A&G will primarily invest in affordable rental housing and urban renewal projects, while Urbania Alpha will invest across a range of urban development projects and sustainable tourism initiatives.
- The investment period runs until December 2030, and all projects will have to comply with the Do No Significant Harm Principle, be economically and financially viable, and target private or public-private entities.
- This investment is a significant step towards fostering an environmentally sustainable and responsible tourism model by financing sustainable tourism projects, contributing to the EIB Group's strategic priorities of climate action, environmental sustainability, and strengthening social infrastructure in the European Union.
