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CEB signs € 72 million loan agreement with NBank to finance social housing in Germany

4 May 2017

Signature NBank 2017HANOVER – The Governor of the Council of Europe Development Bank (CEB), Rolf Wenzel, signed today a € 72 million loan agreement with Investitions- und Förderbank Niedersachsen (NBank) to finance a social housing programme for low-income persons in Lower Saxony.

The € 72 million loan, which was approved by the CEB’s Administrative Council in November 2016, will finance the construction of new rental housing and the renovation of existing rental units, including energy efficiency improvements. There are special provisions to provide accommodation to migrants, refugees and asylum-seekers. Low-income families with children, persons with disabilities and elderly persons will also benefit from the housing programme.

The Federal State of Lower Saxony, which is the fourth most populous in Germany, has received a large number of refugees since 2015 and has made the development of affordable housing for low-income households a priority.

Commenting on the signing of the loan agreement, Governor Wenzel said: “This loan will help to improve public infrastructure in Lower Saxony and provide migrants and refugees as well as other vulnerable population groups with access to housing. We at the CEB are very pleased to be financing a high social added value project in line with the Bank’s social mandate.”

The agreement was signed at the headquarters of NBank in Hanover. Signing on behalf of NBank was Michael Kiesewetter, Chairman of the Managing Board.

Set up in 1956, the CEB (Council of Europe Development Bank) has 41 member states. Twenty-two Central, Eastern and South Eastern European countries, forming the Bank's target countries, are listed among the member states. As a major instrument of the policy of solidarity in Europe, the Bank finances social projects by making available resources raised in conditions reflecting the quality of its rating (Aa1 with Moody's, outlook stable, AA+ with Standard & Poor's, outlook stable and AA+ with Fitch Ratings, outlook stable). It thus grants loans to its member states, and to financial institutions and local authorities in its member states for the financing of projects in the social sector, in accordance with its Articles of Agreement.

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