The European Investment Bank (EIB) Group and Spain’s Instituto de Crédito Oficial (ICO) have jointly invested in the Prado XII securitisation fund, managed by Unión de Créditos Inmobiliarios (UCI), to support energy efficiency improvements in housing across Spain and Portugal. The initiative aims to stimulate investment in renovating existing homes and financing new near-zero energy buildings, helping reduce emissions and improve the climate resilience of the housing sector in the Iberian Peninsula.
The EIB Group, which includes the European Investment Bank and the European Investment Fund, is contributing €225 million in total, while the ICO is investing an additional €100 million in this second joint operation involving securitised residential mortgages. The funding will enable UCI to issue new sustainable loans for homeowners and housing associations focused on energy-efficient renovations and the purchase of environmentally efficient properties.
The operation is aligned with major EU climate and housing policy goals, including the European Commission’s Renovation Wave strategy and the EIB Group’s climate action roadmap. It is designed to accelerate decarbonisation in the building sector while promoting sustainable finance solutions that support long-term environmental objectives.
Prado XII is structured as a residential mortgage-backed securitisation (RMBS) fund that meets EU standards for simplicity, transparency, and standardisation, making it more secure and attractive for investors. The financial structure includes risk protection mechanisms such as cash reserves and staged amortisation, ensuring stability and reliability for participating institutions.
Overall, the initiative is intended to mobilise private and institutional capital toward sustainable housing finance, strengthen the energy efficiency of Europe’s housing stock, and support climate mitigation efforts by encouraging greener building practices and energy-conscious homeownership.
