News
CEB signs €125 million loan with City of Leipzig to expand social infrastructure
25 March 2025
LEIPZIG – The Council of Europe Development Bank (CEB) and the City of Leipzig signed a €125 million loan agreement to expand and modernise education infrastructure and temporary accommodation for refugees and homeless people in Leipzig.
The loan agreement, signed by Deputy Mayor for Finance Torsten Bonew and CEB Vice-Governor Johannes Böhmer, will support significant investments in social infrastructure to address the needs of Leipzig’s growing and increasingly diverse population.
The number of city residents has increased by almost 25% since 2010, leading to mounting pressure on the education system and accommodation services. School enrolments have grown significantly, with a marked increase in students with a migration background. Simultaneously, the city’s refugee and homeless accommodation facilities have reached capacity limits in recent years, creating urgent infrastructure needs in underserved neighbourhoods. The CEB loan will support purpose-built solutions for these vulnerable populations.
“As the City of Leipzig, we have already been able to get to know the CEB during the joint implementation of the successful projects of Leipziger Wohnungs- und Baugesellschaft mbH and Klinikum St. Georg gGmbH. With today's signing of the contract, we as the City of Leipzig have also gained an outstanding strategic partner in the CEB for the financing of social and educational infrastructure and look forward to a successful joint collaboration”, said Deputy Mayor Torsten Bonew.
“We are pleased to expand our partnership with the City of Leipzig to finance these critical social infrastructure projects,” said Vice-Governor Böhmer. “They will have an important impact on the lives of highly vulnerable groups, who are at the heart of the CEB’s mission.”
The project is expected to benefit over 8 400 students by building and upgrading schools in social-priority districts, while the housing component will create approximately 900 temporary accommodations for refugees and homeless people.
This agreement marks the CEB’s first direct loan to the City of Leipzig, building on existing collaboration with Leipzig’s municipal housing company, Leipziger Wohnungs- und Baugesellschaft mbH, and the municipal hospital of St. Georg. The signing follows the ground-breaking ceremony earlier the same day for the latter’s new Central Building II, which is being co-financed by a €69.7 million CEB loan signed with the hospital in September 2024, supported by the City with a guarantee.
The Council of Europe Development Bank (CEB) is a multilateral development bank, whose unique mission is to promote social cohesion in its 43 member states across Europe. The CEB finances investment in social sectors, including education, health and affordable housing, with a focus on the needs of vulnerable people. Borrowers include governments, local and regional authorities, public and private banks, non-profit organisations and others. As a multilateral bank with an excellent credit rating, the CEB funds itself on the international capital markets. It approves projects according to strict social, environmental and governance criteria, and provides technical assistance. In addition, the CEB receives funds from donors to complement its activities.