EIB grants EUR 225 million loan to Malmö for energy-efficient housing project

The European Investment Bank (EIB) has approved a SEK 2.6 billion (approximately €225 million) loan to the Swedish city of Malmö to support the construction of more than 1,500 energy-efficient apartments. The initiative aims to advance European Union climate objectives while assisting Sweden in achieving its energy-efficiency targets.

The municipal housing company MKB Fastighets AB will oversee the development of 13 residential buildings, which will provide a total of 1,547 apartments across the city. The construction is planned to take place in phases, with full completion expected by 2029. The newly built homes will meet energy efficiency standards that surpass Sweden’s national benchmarks.

EIB Vice-President Thomas Östros emphasized the bank’s dedication to sustainable urban development, stating, “This investment underscores our strong commitment to supporting sustainable and inclusive urban development across Europe. By providing long-term financing for initiatives like this, we help cities like Malmö, known as the City of Parks, lead the way in tackling climate change while improving the quality of life for their residents.”

Malmö, Sweden’s third-largest city with a population of around 360,000, is experiencing growth that exceeds the national average. The city serves as a crucial economic hub in the region, benefiting from its strategic location and its connection to Denmark via the Öresund Bridge, which facilitates collaboration with Copenhagen through a shared shipping port.

MKB Fastighets AB CEO Marie Thelander Dellhag highlighted the environmental significance of the project. “Reducing the climate impact of our new housing projects is crucial,” she said. “The financing from EIB confirms that our projects meet the high standards needed to achieve our climate goals. Efficient energy usage and ambitious climate targets are key to making MKB and Malmö more sustainable.”

The EIB’s latest financial support represents the seventh loan provided to Malmö, continuing a collaboration that began in 1995. The project aligns with EU regulations on energy performance and efficiency in buildings, reinforcing the city’s commitment to environmentally friendly development.

Claes Ramel, Head of Treasury for the City of Malmö, described the funding as a vital component in supporting the city’s expansion. “The financing facility from the EIB is an important tool in meeting the funding needs of our growing city,” he said. “It adds to Malmö’s financial platform and confirms the high environmental standards of our investments. This substantial funding allows us to pursue our development plans with confidence.”

With the EIB’s backing, Malmö is set to make significant strides in sustainable housing, enhancing its reputation as a leader in green urban living.