{"id":337915,"date":"2025-08-12T07:55:17","date_gmt":"2025-08-12T07:55:17","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/337915\/"},"modified":"2025-08-12T07:55:17","modified_gmt":"2025-08-12T07:55:17","slug":"spains-regional-resilience-fund-backs-urban-development-and-sustainable-tourism","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/337915\/","title":{"rendered":"Spain\u2019s Regional Resilience Fund backs urban development and sustainable tourism"},"content":{"rendered":"

A \u20ac230m commitment financed by loans from NextGenerationEU, will be allocated to two financial intermediaries, A&G and Urbania Alpha.<\/p>\n

\"OldThe fund has committed \u20ac230m to finance agreements signed by the European Investment Bank with A&G and Urbania Alpha | Sam Williams on Unsplash<\/p>\n

Spain\u2019s Regional Resilience Fund has committed \u20ac230m to finance agreements signed by the European Investment Bank (EIB) with A&G and Urbania Alpha to fund new urban development projects, including affordable housing and sustainable tourism\u00a0across Spain.<\/p>\n

The fund, which is part of Spain\u2019s Recovery, Transformation and Resilience Plan, is financed by loans from NextGenerationEU, the European Commission\u2019s COVID-19 recovery package.<\/p>\n

The agreements were facilitated by a new intermediated mechanism launched by the EIB earlier this year to channel financing via financial intermediaries specifically for this purpose and follows an earlier agreement, announced at the beginning of July, with Buenavista Infrastructure and Arcano Partners for \u20ac410m. This latest announcement brings total financing in support of urban development projects and sustainable tourism to \u20ac640m under the new instrument.<\/p>\n

Investment opportunities<\/p>\n

The EIB said that A&G and Urbania Alpha will assess investment opportunities across the country and support projects in areas such as affordable housing, education, healthcare, social and cultural infrastructure, sustainable mobility, waste and water management, energy efficiency and sustainable tourism.<\/p>\n

A spokesperson for the EIB told Impact Investor that the financing will also contribute to the EIB Group\u2019s strategic priorities of climate action and environmental sustainability and strengthen social infrastructure in the European Union, two of the\u00a0Group\u2019s\u00a0eight strategic priorities set out in its\u00a0Strategic Roadmap<\/a>\u00a0for the years 2024-2027.<\/p>\n

\u201cIn the case\u00a0 of intermediated financing, the EIB monitors that the funds are being used in line with the objectives. The intermediaries commit to\u00a0allocate funds according to certain previously defined criteria and they undertake part of the task of monitoring that the projects financed are in line with the defined criteria,\u201d they said.<\/p>\n

Investing in urban development and sustainable tourism<\/strong><\/p>\n

Against a backdrop of rising social tensions due to mass tourism, particularly in Spain, this mechanism may prove to help alleviate some of the impacts.<\/p>\n

\u201cFinancing coming from the urban development and sustainable tourism intermediated instrument of the Regional Resilience Fund will promote investments in projects that contribute to developing our cities, fostering their green transition and adapting them to the evolving needs of citizens \u2013 this includes projects in areas such as affordable housing, waste and water management or sustainable mobility,\u201d said the spokesperson.<\/p>\n

\u201cIt also aims to foster an environmentally sustainable and responsible tourism model by financing sustainable tourism projects,\u201d they added.<\/p>\n

Both A&G and Urbania Alpha have created dedicated close-ended investment vehicles through which they will channel the funds into eligible projects.\u00a0 A&G, which has been allocated \u20ac130m by the EIB, will channel it through A&G Real Estate Sustainable, and Urbania Alpha, which includes the AEXX Capital brand and has been allocated \u20ac100m, will channel the financing through AEXX Impact Investments\u00a0I. \u00a0<\/p>\n

A&G will invest in equity, while Urbania Alpha will finance projects through equity or loans, or a combination of both, with a maximum allocation per project of \u20ac22m and maximum recovery periods of 15\u00a0years for equity investments and 20\u00a0years for debt. The investment period runs until December\u00a02030.<\/p>\n

\u201cThe \u20ac230 million financing is not a grant. Financial intermediaries have until 31 December 2030 to invest the resources in economically and financially viable projects. Once invested, the financial intermediaries must manage and monitor the portfolio of investments until exit\/repayment,\u201d said the spokesperson, explaining that the final beneficiaries targeted would be private or public-private entities.<\/p>\n

\u201cFinal beneficiaries must develop eligible projects in Spain. Start-ups may be eligible if they develop a project that fulfils the eligibility requirements but are not specifically targeted in this instrument,\u201d they said, adding \u00a0that among other criteria, all projects will have to comply with the Do No Significant Harm Principle and be economically and financially viable.<\/p>\n

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