LLB offering new financing solutions to promote sustainable construction

Vaduz, 7 July 2023. Liechtensteinische Landesbank (LLB) is offering new and innovative financing solutions to support sustainable construction projects. Clients who make energy efficiency a priority in their new construction projects will benefit from particularly advantageous conditions, including access to an interest-free mortgage for energy-efficient refurbishment projects. From 2024 onwards, a new website will provide extensive information on sustainable construction.

The new financing models include both a mortgage under particularly favourable conditions for new construction projects and a new, interest-free mortgage for works to make existing buildings more energy-efficient. The introduction of the interest-free mortgage is subject to the entry into force of a new bill amending the Liechtenstein Energy Efficiency Act (Energieeffizienzgesetz). Both products are aimed at improving energy efficiency and achieving significant reductions in greenhouse gas emissions. “Real estate accounts for around 35 per cent of greenhouse gas emissions in Liechtenstein. As the market leader when it comes to granting mortgages and building loans in Liechtenstein, we believe we have a particular responsibility to help the country become climate-neutral”, said LLB Group CEO Gabriel Brenna. “At the same time, here at Liechtensteinische Landesbank, we are helping to achieve the goals of the Liechtenstein 2050 climate strategy.”

Attractive mortgages for new builds 

By making the existing environmental mortgage ("Umwelthypothek") more flexible and expanding it, LLB will be supporting clients who take the highest energy efficiency standards into account when developing a new property with very attractive mortgage interest rates from January 1, 2024. “More and more clients are taking sustainability issues into account in construction. This is because, on the one hand, it allows them to make a contribution to protecting the environment and, on the other, because an energy-efficient property has a positive impact on their own finances and the value of their building in the long run. We are keen to support sustainable construction by offering discounted mortgage rates”, said Group CEO Brenna.

Zero-per-cent mortgages for energy-efficient refurbishments

From 2024, LLB’s mortgage for energy-efficient refurbishments will offer something special for its clients: clients who need finance for works to make their existing property more energy-efficient will not pay any interest (up to a defined maximum amount). LLB will be able to introduce this product thanks to a new bill amending the Liechtenstein Energy Efficiency Act. The Liechtenstein government intends to provide banks with interest-free capital to further promote measures intended to improve energy efficiency. The bill will be debated in the Liechtenstein Parliament (Landtag) in September. LLB will contribute to this aim by removing all interest charges on the mortgage and covering all associated administration costs. “We are delighted to see LLB, with its expertise and initiative, pave the way for a positive sustainability solution for the people of Liechtenstein”, said Prime Minister of Liechtenstein Daniel Risch.

New information platform on sustainable construction 

LLB will also be launching a new website dedicated to sustainable construction. It is designed to become one of the main ports of call in Liechtenstein when it comes to the topic of energy-efficient refurbishments. The website content is being developed with the support of the Principality’s government. In the future, it will be expanded to feature other useful tools that will help interested parties to identify the refurbishment measures that their property needs. “We welcome LLB's initiative. The information platform will provide considerable support when it comes to achieving the targets set out in the country’s energy and climate policy”, said Deputy Prime Minister Sabine Monauni.

The experts at LLB are the first port of call for clients when it comes to refurbishment and new construction. “Our client advisors are on hand to help with an initial assessment of a client’s refurbishment needs and to identify suitable sources of finance and potential subsidies”, explained Group CEO Gabriel Brenna. “We are currently training our experts on all aspects of sustainable construction. By January 2024, our advisors will have undergone the necessary further training to be able to provide our clients with the best possible advice on this challenging topic.” 

LLB aiming to be fully climate-neutral by 2040

The new products and associated measures are another step in LLB’s journey towards becoming entirely climate neutral. As part of its ACT-26 strategy, the bank is aiming to achieve net zero emissions by 2040 – both in its banking operations and in its banking products. The special products designed to promote sustainable construction projects will play a key role in achieving this goal.