Inbank has signed its first synthetic securitisation transaction backed by PLN 635 million (EUR 147 million) in solar panel loans to private individuals aimed at accelerating Poland’s green energy transition and supporting green lending. In cooperation with the European Investment Bank (EIB) and European Investment Fund (EIF), this landmark transaction will provide capital relief and enable Inbank to provide up to PLN 701 million (EUR 163 million) in new, more competitively priced loans to private individuals in Poland over the next three years.
According to Priit Põldoja, Chairman of the Management Board of Inbank, the bank’s first synthetic securitisation transaction is a vital step in Inbank’s long-term growth strategy. “It enables us to scale our operations in strategic segments with a strong focus on green financing. It not only strengthens our capital position but also empowers us to offer more competitive terms to our customers, further strengthening our market position,” explained Põldoja.
“Our partnership with the EIBG reinforces our commitment to sustainability while driving growth and innovation. We at Inbank are proud to lead EIBG’s first entirely green securitisation in Poland with InvestEU support, accelerating the transition to renewable energy solutions both in Poland and beyond,” emphasized Põldoja.
“The agreement signed with Inbank today touches on an important aspect of energy transition: providing green support to private individuals. As the EU’s climate bank, we actively support multiple parts of the energy transition puzzle. Our cooperation with Inbank allows us to reach private consumers to help them make the most of green transition,” said Teresa Czerwińska, Vice President of the European Investment Bank. “This is the EIBG’s first fully green InvestEU securitisation in Poland. The complex financial architecture of the agreement showcases creative approach by the EIB and EIF seeking to get even more bang for the buck in driving green transition,” added Czerwińska.
The EIBG has issued a guarantee in a total of PLN 625 million (EUR 145 million) across both senior and mezzanine tranches. Under the terms of the agreement, the securitisation structure is as follows:
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EIF offers protection on the senior, or the least risky tranche, worth over PLN 549 million (EUR 127 million), half of which is counter-guaranteed by the EIB;
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EIF also provides protection on more than PLN 76 million (EUR 18 million) of the riskier mezzanine tranche, which is counter-guaranteed by the European Commission’s InvestEU programme;
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The junior tranche, the most risky part of the structure, is worth around PLN 10 million (EUR 2,318 million) and retained by Inbank.
“We are glad to be partnering with Inbank for their first securitisation transaction,” said Marjut Falkstedt, Head of the European Investment Fund. “The agreement signed today ticks several important boxes: it will inject significant new funding into the Polish economy for sustainable investment ; it will have a very direct impact for private individuals. And, last but not least, it serves as a fine example of three-way cooperation between the EIB, EIF and the European Commission leveraging innovative financial instruments in support the green transition,” explained Falkstedt.
According to Katarzyna Smyk, Head of the European Commission Representation in Poland, this is the EIBG’s first fully green securitisation in Poland under InvestEU. “The European Commission’s guarantee has supported this innovative financial instrument that will now advance green investment not just by corporations but also by individuals. We also value cooperation between EU countries under this project,” added Smyk.
Under the arrangement, Inbank commits to providing approximately PLN 701 million (EUR 163 million) in new lending to private individuals over the next three years. The financing will primarily support the acquisition of solar panels and heat pumps for private households in Poland. These initiatives aim to reduce CO2 emissions, improve air quality for health benefits, support climate change mitigation and contribute to the RepowerEU targets, an EU programme aimed at increasing strategic autonomy of the bloc by diversifying energy supply and accelerating the green transition.
The agreement will support further the development of cohesion regions in Poland and contribute to deepening of the EU’s Capital Markets Union.
The EIB is an institution of the European Union providing long-term financing for sound projects that pursue the bloc’s shared priorities. The EIB’s shareholders are the 27 member states. Its involvement increases economic competitiveness, spurs innovation, promotes sustainable development, enhances social and territorial cohesion, and supports a swift and fair transition to climate neutrality.
The EIF is part of the EIBG. It supports Europe’s SMEs by improving their access to finance through a wide range of selected financial intermediaries, such as banks, guarantee and leasing companies, micro-credit providers and private equity funds.
In 2023, the EIBG granted a total of €88 billion in new financing to more than 900 projects, of which €49 billion was earmarked for green investments. These funds are expected to support a total investment of €320 billion, help 400 000 companies and sustain 5.4 million jobs. In Poland, more than half of the €5.1 billion granted by the EIBG in 2023 went to climate-friendly projects.
The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery and growth. It helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments, making funding for investment projects in Europe simpler, more efficient and flexible. InvestEU is underpinned by an EU budget guarantee of €26.2 billion and meant to mobilise at least €372 billion in additional investment.
Inbank is a financial technology company with an EU banking license that connects merchants, consumers and financial institutions on its next generation embedded finance platform. Partnering with 6,200 merchants, Inbank has 881,000+ active contracts and collects deposits across 7 markets in Europe. Inbank bonds are listed on the Nasdaq Tallinn Stock Exchange.