Inside information: Toivo Group receives €60 million financing from the European Investment Bank for energy efficient buildings
Toivo Group Plc, Company release, Inside information, 29 March 2023 at 14:00 (EET)
Toivo Group Plc and the European Investment Bank (EIB) have signed today a €60 million green loan to finance 19 development projects for high energy performance residential buildings. The agreement will support the construction of over 700 apartments in Finland, mainly in the Helsinki region but also in the Tampere and Turku regions.
The projects will provide comfortable and energy-efficient small and medium sized flats, which are in high demand in Finland. Residential properties with high energy efficiency standards are expected to make a significant contribution to the REPowerEU plan to end the European Union’s dependence on fossil fuel imports, and to the collective goal of achieving net zero emissions.
The financing of this operation supports the EIB's clean energy lending priority and complies with the energy efficiency criteria for new residential buildings in Finland. As a result, the agreement qualifies as a 100% climate action project in accordance with the EIB’s current climate mitigation criteria for new buildings.
Toivo Group Chief Executive Officer Markus Myllymäki said: “We are very pleased to be cooperating with the EIB for the first time, thanks to the company’s expertise and many years of work in sustainable construction and energy efficiency. The EIB financing will enable us to implement a develop, build and own business model and, above all, help Europe to break away from fossil energy sources.”
EIB Vice-President Thomas Östros said: “We are delighted to be cooperating with Toivo Group to develop new highly energy-efficient residential buildings in Finland. The project specifically targets the energy efficiency of buildings, which is a key priority under the European Green Deal, a key part of REPowerEU and also one of the most effective ways to deal with the current energy crisis and to mitigate climate change.”
Further information
Toivo Group Plc
Markus Myllymäki
Chief Executive Officer
Toivo Group Plc
Tel. +358 (0)40 847 6206
Certified Adviser: Danske Bank A/S, Finland branch, +358 (0)50 575 4422
European Investment Bank
Kristiina Randmaa
Tel.: +352 4379 72894
Press Office
Tel. +352 4379 21000
About Toivo
Toivo is a Finnish real estate company that was founded in 2015. Its business focuses on project development and the long-term ownership of apartments. The company’s business model is unique as it combines the value chain of real estate business, from development and construction to ownership, management and rental of a completed property. Toivo manages the entire life cycle of properties with its own team, from raw land development to tenancy agreement negotiations and property maintenance. This way, Toivo is able to generate additional value for its customers, shareholders and stakeholders.
Toivo’s strategy is to develop properties in accordance with the Toivo concept. The aim is to generate a strong development margin and a stable and attractive return, and in this way enable long-term ownership and the generation of higher additional value for Toivo’s customers. Toivo has a knowledgeable and experienced team of experts with strong backgrounds in the real estate business. The members of Toivo’s team have been involved in the development and construction of over 17 000 apartments, and they have an average of ten years of experience in the real estate business.
Toivo’s revenue in 2022 was €20.3 million and its operating profit was €15.6 million.
About the European Investment Bank
The EIB is the long-term lending institution of the European Union and is owned by the EU Member States. The EIB Group has adopted a Climate Bank Roadmap to deliver on its ambitious agenda to support €1 trillion of climate action and environmental sustainability investments in the decade to 2030 and to devote more than half of EIB finance to climate action and environmental sustainability by 2025. As part of the roadmap, all new EIB Group operations have been aligned with the goals and principles of the Paris Agreement since the start of 2021.
