Deutsche Bank, EIB Launch Discounted Mortgage Program to Finance Climate-Friendly Homes

Deutsche Bank and the European Investment Bank (EIB) Group have announced a new agreement to provide discounted mortgages aimed at promoting the construction of new climate-friendly homes and energy-efficiency modernizations of existing housing in Germany. Under the new program, the EIB Group will guarantee a €150 million mezzanine tranche in a consumer loan securitization with Deutsche Bank, freeing up regulatory capital for Deutsche Bank, with the advantage passed onto the bank’s clients in the form of discounted mortgages. To be eligible, borrowers must meet stringent criteria, such as a 30% reduction in primary energy demand for a home modernization. The new program aims to provide more than €600 million of low-interest mortgages to help build climate-friendly houses. EIB Vice-President Nicola Beer stated that this cooperation with Deutsche Bank will enable thousands of households in Germany to construct green homes or improve the climate footprint of existing houses. The launch of the program follows a series of sustainable finance goals announced by Deutsche Bank last year, including a target to enable a total of €500 billion in sustainable financing and investments between 2020-2025, and marks a continuation of the bank’s sustainable finance collaboration with the EIB. Resources: https://www.esgtoday.com/deutsche-bank-eib-launch-discounted-mortgage-program-to-finance-climate-friendly-homes/