Investment in urban advancement and eco-friendly tourism is supported by Spain's Regional Resilience Fund.
The European Investment Bank (EIB) has announced a new intermediated mechanism to channel financing worth €640 million for urban development projects and sustainable tourism [1][2]. This latest announcement brings the total funding under the new instrument to €640 million. Spain’s Regional Resilience Fund has committed an additional €230 million specifically for urban development and sustainable tourism projects, bringing the total funding in Spain to €870 million.
This €230 million NextGenerationEU commitment is divided between two financial intermediaries: A&G and Urbania Alpha. A&G receives €130 million, while Urbania Alpha (operating under the AEXX Capital brand) receives €100 million.
Both intermediaries will channel this funding into projects across Spain, focusing on urban development including affordable housing, sustainable tourism initiatives, broader social infrastructure such as education and healthcare, clean transportation, waste management, and energy efficiency. The projects supported by this commitment aim to improve accessibility to affordable housing and promote green tourism models.
Individual projects financed under these agreements can receive up to €22 million each, and the program runs through December 2030.
A&G will channel the €130m they received from the EIB through A&G Real Estate Sustainable. Their allocation through their real estate arm focuses on urban renewal and affordable rental housing, emphasizing green projects that generate local employment and sustainable community development.
Urbania Alpha, via its AEXX Capital brand, will channel the €100m they received from the EIB through AEXX Impact Investments I. They seek investments nationwide targeting affordable housing and sustainable tourism developments, with a broader focus on social infrastructure and clean technology adoption.
Both companies leverage their existing platforms and expertise to manage these public-private collaboration funds effectively, aiming to unlock significant capital for Spain’s urban development and sustainable tourism transformation as part of the country’s COVID-19 recovery plan.
Once invested, the financial intermediaries must manage and monitor the portfolio of investments until exit/repayment. The funds must comply with the Do No Significant Harm Principle and be economically and financially viable. The EIB will monitor that the funds are used in line with the objectives, and the intermediaries will allocate funds according to certain previously defined criteria.
This investment is part of Spain's Recovery, Transformation and Resilience Plan, which is financed by loans from NextGenerationEU, the European Commission’s COVID-19 recovery package.
[1] European Investment Bank. (2021). EIB Group boosts urban development and sustainable tourism projects with €640 million under new instrument. Retrieved from https://www.eib.org/en/press/news/2021-09-23-2021-eib-group-boosts-urban-development-and-sustainable-tourism-projects-with-640-million-under-new-instrument
[2] European Commission. (2021). NextGenerationEU. Retrieved from https://ec.europa.eu/info/strategy/next-generation-eu_en
[3] European Commission. (2021). Spain's Recovery and Resilience Plan. Retrieved from https://ec.europa.eu/info/business-economy-euro/recovery-plan/country-specific-recovery-and-resilience-plans/spain_en
A&G is channelling €130 million received from the European Investment Bank (EIB) through their real estate arm, A&G Real Estate Sustainable, focusing on urban renewal and affordable rental housing, while emphasizing green projects that generate local employment and sustainable community development.
Urbania Alpha, operating under the AEXX Capital brand, is using the €100 million from the EIB to invest nationwide in projects targeting affordable housing and sustainable tourism developments, with a broader focus on social infrastructure and clean technology adoption.
These investments from A&G and Urbania Alpha are part of Spain’s Recovery, Transformation, and Resilience Plan, funded by loans from NextGenerationEU, the European Commission’s COVID-19 recovery package.
The European Investment Bank (EIB) has announced a mechanism to provide €640 million in development finance for urban development projects and sustainable tourism, with the aim of improving financial inclusion in areas such as affordable housing and green tourism models.
