Rikshem and EIB sign SEK 1 billion loan for energy efficient housing refurbishment
The SEK 1 billion financing will support the refurbishment to higher energy efficiency standards of social housing from the 1960s and 70s. Intervention include new windows, ventilation systems and low energy lighting, giving a second live to housing built under Sweden’s miljonprogrammet between 1965-1974.
The European Investment Bank (EIB) has signed a SEK 1 billion (EUR 95 million) loan agreement with Rikshem AB (publ). The Swedish property developer and owner will use the long-term financing facility to renovate housing stock to higher energy efficiency standards. Most of the properties concerned are to be found in Uppsala and Stockholm, with further real estate in cities such as Västerås, Norrköping, Östersund and Helsingborg. The loan structure, with a tenor up to 15 years, will support the company’s strategy by providing flexibility and sustainability to the capital structure.
Alexander Stubb, vice-president of the EIB, commented: “The standards for energy efficient housing have been redefined in recent times, homes that were built in the 60s and 70s waste a lot of energy so this update is a very smart and necessary thing to do. Rikshem has set itself the goal to become CO2-neutral by 2030 and the EIB is glad that it can support projects with such a long-term vision.”
Technically speaking the financing will cover investments for improved energy efficiency in residential properties. The investments will for example cover new windows and ventilation systems with heat recovery and sensor-driven low energy lighting. In some cases, the thermal insulation of the facades will be improved and elevators renovated.
“ We are pleased that EIB is supporting us with funding for our investments in energy efficiency. This is an important area for Rikshem and indeed for society at large. said Sophia Mattsson-Linnala, Rikshem’s CEO.
The demand for social infrastructure is expected to rise in Sweden, not only due to demographic reasons, but also because of ongoing urbanisation: Swedish cities are among EU’s fastest growing cities. The project supports national and European targets for energy efficiency and contributes to CO2 emission reduction, thus supporting climate change objectives as well as diversification of energy supply objectives in the EU.
Press contacts:
EIB: Tim Smit, +352 (0) 691 286423, t.smit@eib.org
Rikshem: Christina Fernström, +46 (0) 72 4024607 Christina.Fernstrom@rikshem.se
Background Information:
The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. In 2018 alone, the Bank made available EUR 1.37 bln in loans for Swedish projects in various sectors, including research & development, industry, nearly-zero-energy-buildings and telecommunications.
The EIB is the European Union's bank; the only bank owned by and representing the interests of the European Union Member States. It works closely with other EU institutions to implement EU policy and is the world’s largest multilateral borrower and lender. The EIB provides finance and expertise for sustainable investment projects that contribute to EU policy objectives. More than 90% of its activity is in Europe.
Rikshem is one of Sweden’s largest private property companies. We own, develop and manage residential properties and properties for public use in selected municipalities in Sweden, where we offer safe, pleasant and flexible housing in attractive locations. Rikshem aims to be a long-term partner for municipalities and is owned by the Fourth Swedish National Pension Fund and AMF Pensionsförsäkring AB. Read more at rikshem.se.