News
CEB to support construction of student housing in Ireland with a € 75 million loan
15 June 2021
PARIS - The Council of Europe Development Bank (CEB) is joining forces with the Housing Finance Agency (HFA) of Ireland to fund the expansion of the Higher Education Institutions’ portfolio of Student Accommodation.
The Irish higher education system is facing strong demand pressure. Boasting both the youngest and fastest growing population in Europe, Ireland also has the highest tertiary attainment rate of European OECD states, with nearly half of all 25-64-year-olds completing tertiary-level education. Strong demand for higher education and particularly robust and growing female participation, are further amplified by the effect of Brexit which made Ireland even more attractive to international students.
The steady increase in the number of students in Ireland is creating unprecedented demand for affordable Purpose-Built Student Accommodation (PBSA). Scarcity of student accommodation has also strained rental housing markets surrounding the universities in Ireland’s main cities. In response, the Irish Government is targeting the expansion of public sector student accommodation as part of its Rebuilding Ireland (RI) initiative and the National Student Accommodation Strategy. The Government has approved legislation to allow the HFA, a public body, to finance Higher Education Institutions (HEIs) for the construction of PBSA.
The CEB loan of €75 million would provide direct support to the HFA and, through it, to the seven implementing HEIs. At the core of the program is the construction of new public student accommodation which is expected to significantly contribute to resolving the overall rental housing shortage problem and moderate the pressure on rents for students and non-students alike.
The Governor of the CEB, Rolf Wenzel, said: “As a social development bank, the CEB considers public provision of purpose-built student accommodation a particularly relevant field, as it targets a well-defined beneficiary population, including above average female participation, and will prioritise vulnerable groups such as students with disabilities, who may otherwise not be able to take part in tertiary education.”
The CEB has enjoyed a longstanding and fruitful cooperation with the HFA, a proven partner with a strong track record in delivering housing projects. Four CEB loans in social housing sector were approved for HFA over the last 13 years. Overall, since joining the CEB in 2004, Ireland benefitted from more than €600 million in loans within sectors ranging from the creation and preservation of viable jobs and social housing for low-income families to development of public infrastructure.
Set up in 1956, the CEB (Council of Europe Development Bank) has 42 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, AAA with Standard & Poor's, outlook stable, AA+ with Fitch Ratings, outlook stable and AAA* with Scope 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.
*unsolicited