VVO Group plc: VVO Group to receive EUR 170 million financing from the European Investment Bank
VVO GROUP PLC
STOCK EXCHANGE RELEASE
28 NOVEMBER 2016 AT 10.30.
VVO Group to receive EUR 170 million financing from the European Investment Bank
VVO Kodit Oy and the European Investment Bank (EIB) have agreed on EUR 170 million long-term financing, which will be used to fund the construction of nearly zero-energy buildings (nZEBs) over the next few years. The financing is targeted at new nearly zero-energy buildings in the Helsinki Metropolitan Area and other growth centres such as Vantaa, Espoo and Tampere. The financing from the EIB is part of an investment programme in which VVO Group will implement 1,800 apartments. Over the past five years, the company has invested nearly EUR 1.5 billion in market-based rental housing.
The first loan of EUR 75 million has now been signed and the goal is to sign the remaining loan next year. The loan from the EIB is unsecured and the parent company VVO Group plc has provided a guarantee. The loan will be extended under the European Fund for Strategic Investments (EFSI) - part of the Investment Plan for Europe - the Juncker Commission's strategy to support investments and bring back jobs and growth to Europe. It allows the EIB, the European Commission's strategic partner in the plan, to do more lending to innovative projects.
The goal of the financing cooperation is to develop new, nearly zero-energy buildings and to reduce the amount of carbon emissions generated by construction. VVO Group has already made investment decisions according to the conditions of the loan to build nearly zero-energy buildings at Hilapellontie 22 in Helsinki and at Pyhtäänkorventie 25 and Leineläntie 3 in Vantaa.
"Investing in energy efficiency is one of the most cost effective and rational way of reducing emissions and Finland is really leading the way in this on a European and global level. We are glad we can support VVO Group in this, and combined with earlier investments in the sector, this operation shows the EIB is serious about having the fight against climate change as a top priority." says Jan Vapaavuori, Vice President of the European Investment Bank.
"A new type of energy-efficient and climate-friendly construction plays a key role when we invest in new construction and renovate existing properties. We develop and provide our tenants with new housing solutions and services that create better urban housing. Financing from the European Investment Bank promotes new growth in line with VVO Group's strategy, and the new properties will make it easier for people to relocate in pursuit of employment in urbanising Finland." says VVO Group CEO Jani Nieminen.
More information:
VVO Group plc
Jani Nieminen, CEO, tel. +358 (0)50 373 4847
VVO Group plc
VVO Group plc offers rental apartments and housing services in Finnish growth centres. The vision of the housing investment company is to be a pioneer in housing and the customer's number-one choice. VVO Group aims to invest heavily in increasing its housing supply by 2021 by developing new properties and buying existing properties. www.vvokonserni.fi