In 2023, the European Investment Bank (EIB) Group in Austria focused its financing on projects supporting renewable energies, water supply, and social housing. The EU-Bank announced that it committed €1.26 billion in new financing in Austria in its annual results release.
Companies, both private and public, turned to the EIB for support in long-term investments, especially towards the end of 2023, amid a higher interest rate economic environment.
During the first quarters of 2023, companies in Austria were cautious about investments due to a mild recession in the country, as revealed in the new EIB Investment Survey released today.
However, many Austrian companies view the development of stricter climate standards as an opportunity rather than a concern for their businesses, with a higher proportion seeing climate regulation as an opportunity compared to the EU average.
EIB projects in Austria in 2023 were focused on infrastructure, including investments in water infrastructure such as the water supply system in Burgenland, and renewable energy.
The EIB provided a €67 million loan for a new onshore windfarm in Engelhartstetten in Lower Austria. Additionally, a €110 million loan was granted to energy utility EVN AG for the deployment of 103 MW of wind energy. Further loans for renewable energy projects are anticipated to be signed in 2024.
“In Austria, we are seeing a growing interest in projects that contribute to the green transformation of the economy,” says EIB Vice-President Thomas Östros, who oversees the Bank’s business in Austria. “We will continue to invest in climate action in the coming years too.”
In Vienna, the EIB continues to invest in public-private partnerships to construct new schools with innovative educational concepts and high environmental standards. In 2023, the EIB signed a second €75 million loan contract with Erste Bank and a transaction with Hypo NOE for €135 million for affordable housing projects.
In 2023, the EIB Group mainly financed projects in Austria under the categories of “sustainable cities and regions” with €451 million, followed by “sustainable energy and natural resources” investments with €363 million. Investments into “innovation, digital and human capital” reached 314 million euros, and SME financing accounted for €135 million.
Source :European Investment Bank
