In'li, a subsidiary of the Action Logement group and a major player in affordable rental housing in Île-de-France, has announced the issuance of a 10-year private placement "green and social" valued at 100 million euros, subscribed by the European Investment Bank (EIB).
This operation is intended to finance the construction of residential buildings "meeting energy performance criteria", with a "strong social impact" in Île-de-France, an area under strong real estate pressure. According to In'li and the EIB, the housing will be intended for middle-class workers and young professionals in the region.
This green bond issue with a social purpose is a first for In'li. According to the subsidiary, it received a positive opinion from a third party, ISS ESG, one of the world's leading credit rating agencies specialized in sustainable investment and financing.
In form, green bonds are debt securities used to finance projects with positive environmental benefits. In essence, few elements distinguish them from traditional bonds, except for the requirement to produce detailed reporting at regular intervals.
Likewise, construction standards for new housing are already particularly demanding in France. The RE 2020 (Environmental Regulation 2020), which has been gradually introduced since 2021, replaced the RT 2012. This new regulation aims to reduce the carbon footprint of new buildings, emphasizing on overall energy performance, the use of sustainable materials and the environmental impact throughout its life cycle.
Housing construction at a standstill
The deployment of 100 million euros in funding for social housing remains good news, in a particularly difficult context. The housing shortage continues to persist and is intensifying in the context of the real estate crisis. Restrictions on individuals' access to credit and the gradual disappearance of the Pinel tax exemption have caused a sharp slowdown in the construction sector (-25% in 2023), threatening many jobs.
The release of these funds is also in line with government policy, which aims to shift the stimulus of construction towards institutions rather than individuals. Last November, Elisabeth Borne, then Prime Minister, notably stated she wanted to double the construction of intermediate rental housing (LLI) by 2026.
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