Media Release Frankfurt / Luxembourg, May 17, 2024

European Investment Bank and Deutsche Bank launch mortgage programme for climate-friendly housing and energy-efficient home modernisation in Germany

  • The programme will grant discounted mortgages totalling more than 600 million euros to individuals in Germany looking to build climate-friendly houses or to make their homes more energy-efficient.
  • The European Investment Bank supports the programme by guaranteeing a 150-million-euro mezzanine tranche in a consumer loan securitization with Deutsche Bank.
  • Deutsche Bank passes on the resulting advantage to its clients.Deutsche Bank’s Private Bank has started offering discounted mortgages through Deutsche Bank and DSL Bank. Corresponding products from BHW Bausparkasse are expected to follow at the beginning of June.

 

Deutsche Bank and the European Investment Bank Group, consisting of the European Investment Bank and the European Investment Fund, have signed an agreement to promote climate-friendly new builds and energy-efficient home modernisation in Germany. The aim is to support private individuals in Germany by granting them low-interest loans when building new, climate-friendly houses or when modernising their houses to make them more climate-friendly with a focus on energy efficiency. 

The European Investment Bank (EIB) Group is making the more favourable conditions possible through a synthetic securitisation of consumer loans. The transaction frees up regulatory capital for Deutsche Bank who passes on the associated advantages with the transaction to clients in the form of discounted mortgages. The securitisation falls under the framework for simple, transparent and standardised securitisations (STS) of the European Secruitisation Regulation.

Deutsche Bank will grant the discounted loans in its Private Bank through Deutsche Bank, DSL Bank and, expected from the beginning of June, BHW Bausparkasse. The interest rate advantage currently amounts to 0.2 percentage points p.a. compared to the standard condition for the entire first fixed interest rate term, provided this is at least five years.

To be granted a mortgage, borrowers must meet particularly demanding sustainability criteria.  For example, individuals looking to finance a modernisation are required to reduce the property’s primary energy demand by at least 30 percent.

The overall intended outcome of the cooperation is to provide more than 600 million euros worth of low-interest mortgages to help individuals in Germany build climate-friendly houses.

“Climate-friendly housing is a top priority for people because it helps them reduce energy costs and enhances their comfort and well-being,” said EIB Vice-President Nicola Beer, who is responsible for operations in Germany. “Our cooperation with Deutsche Bank will enable thousands of households in Germany to construct green homes or improve the climate footprint of existing houses.”

“We are always looking for opportunities to accelerate the green transition,” said EIF Chief Executive Marjut Falkstedt. “Our transaction with Deutsche Bank is an excellent example. It will free-up financing for people who would like to enhance the sustainability of the apartments and houses they live in or are planning to build. This is good news for them and for Germany.”

Achim Kuhn, Head of Product Management at Deutsche Bank, added: "The important cooperation with the EIB Group enables us to expand our mortgage financing business and offer clients additional financing options. By offering favourable conditions for mortgages, we can specifically help individuals who want to invest in energy-efficient housing. As a reliable partner to our clients, we are taking a big step forward together in reducing energy consumption and CO2 emissions and protecting the environment."

For further information please contact:

Deutsche Bank
Oliver Rittmaier
E-mail: oliver.rittmaier@db.com
Phone: +49 228 920-12126, Mobile: +49 170 3358979

EIB
Donata Riedel
E-mail: d.riedel@eib.org
Phone: +49 30 590047-90, Mobile: +49 151 14659021

EIB: The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment.

Deutsche Bank provides retail and private banking, corporate and transaction banking, lending, asset and wealth management products and services as well as focused investment banking to private individuals, small and medium-sized companies, corporations, governments and institutional investors. Deutsche Bank is the leading bank in Germany with strong European roots and a global network.

With over two million customers, BHW Bausparkasse is one of the largest private building societies and mortgage lenders in Germany. The company is part of Deutsche Bank and, with its lending business and specialist expertise, forms a solid pillar of the bank's private customer business. For decades, BHW Bausparkasse's two core business areas of home loan savings and construction financing have helped many people securely move into their own four walls.

DSL Bank - a subsidiary of Deutsche Bank AG - specialises in residential real estate financing and has established itself as one of the leading mortgage lenders in Germany. In addition, it offers a wide range of personal loans. DSL Bank also has a special focus on cooperating with financial service providers as their partner bank. With an extensive network at hand, DSL Bank is always close to its clients and can optimally adapt its products and services.


Forward-looking statements

This release contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates and projections as they are currently available to the management of Deutsche Bank. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.

By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement.

Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which we derive a substantial portion of our revenues and in which we hold a substantial portion of our assets, the development of asset prices and market volatility, potential defaults of borrowers or trading counterparties, the implementation of our strategic initiatives, the reliability of our risk management policies, procedures and methods, and other risks referenced in our filings with the U.S. Securities and Exchange Commission.

Such factors are described in detail in our SEC Form 20-F of 14 March 2024 under the heading “Risk Factors”. Copies of this document are readily available upon request or can be downloaded from www.db.com/ir

How helpful was this article?

Click on the stars to send a rating

Successful