Funding for urban development and eco-friendly tourism initiatives in Spain supported by its Regional Resilience Program.
NextGenerationEU Funds Boost Urban Development and Sustainable Tourism in Spain
The European Investment Bank (EIB) has facilitated financing agreements worth €230 million with two financial intermediaries, A&G and Urbania Alpha, as part of Spain’s Recovery, Transformation and Resilience Plan. These investments will support urban development projects focusing on affordable housing and sustainable tourism across Spain.
The financing is a part of Spain’s Regional Resilience Fund, which leverages NextGenerationEU loans via the EIB. This funding mechanism aims to facilitate access to NextGenerationEU loans and support urban renewal and green tourism.
A&G, allocated €130 million, will channel the funds through A&G Real Estate Sustainable. Urbania Alpha, which includes the AEXX Capital brand, has been allocated €100 million and will invest through AEXX Impact Investments I. Both firms will seek investment opportunities nationwide in urban development areas, including affordable housing, education and healthcare infrastructure, social infrastructure, clean transport and waste management, energy efficiency, and sustainable tourism.
The maximum allocation per project for Urbania Alpha is €22 million, and the maximum recovery periods are 15 years for equity investments and 20 years for debt. The investments will be targeted towards economically and financially viable projects that must comply with the Do No Significant Harm Principle.
The financing is not a grant, and the financial intermediaries have until 31 December 2030 to invest the resources. Once invested, the intermediaries must manage and monitor the portfolio of investments until exit/repayment.
These investments aim to make housing more accessible and affordable, promote sustainable and greener tourism models, foster urban renewal and the green transition in line with Spain's broader recovery plan goals, and support social and economic cohesion in cities and regions across Spain. The financing will also strengthen social infrastructure in the European Union.
It is important to note that the investments will not specifically target start-ups, but they may be eligible if they meet the eligibility requirements. The final beneficiaries targeted are private or public-private entities, and start-ups may be eligible if they develop a project that fulfils the eligibility requirements.
The investments will support projects in areas such as affordable housing, education, healthcare, social and cultural infrastructure, sustainable mobility, waste and water management, energy efficiency, and sustainable tourism. A&G will invest in equity, while Urbania Alpha will finance projects through equity, loans, or a combination of both.
This €230 million contribution complements other signed agreements, boosting the total financing for urban development and sustainable tourism projects in Spain under this instrument to €640 million so far. The funding is a significant step towards achieving Spain's climate action and environmental sustainability goals.
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