Aira secures €200m in debt commitments from BNP Paribas for first heat pump securitisation
Clean energy-tech champion Aira has successfully secured €200M in debt commitments from BNP Paribas, pioneering a new asset class for heat pump securitisation.
This debt commitment, secured in Aira’s inaugural year, will facilitate the installation of Aira Heat Pumps in thousands of homes across Germany.
The demand for cleaner, more efficient and affordable home energy solutions is evident, however; challenges, such as low gas prices, burdensome regulations, and high upfront costs persist. To accelerate this crucial energy shift, both enhanced governmental incentives and innovative commercial financing solutions are essential. Aira's €200 million heat pump securitisation initiative exemplifies the latter and is set to disrupt residential heating by supercharging Aira’s zero upfront, consumer financing model.
Transforming residential heating will require substantial financial investments, not just to develop and install the technology, but also to make it accessible and affordable for everyone. The €200 million facility provided by BNP Paribas marks the beginning of Aira’s ambition to bridge this financial gap.
“This is a significant milestone as we endeavour to make heat pump technology accessible to every home through affordable monthly payment solutions.”
Martin Lewerth
Aira Group CEO
Martin Lewerth, Aira Group CEO, continues: “With substantial debt financing facilities from partners like BNP Paribas, we are set to remove one huge barrier to heat pump adoption and turbocharge our rollout across Europe. This securitisation with BNP Paribas marks the first step in Aira’s consumer financing journey and represents a major leap towards moving Europe off fossil fuel-based boilers.”
Eirik Winter, CEO of BNP Paribas Group Nordic region, said: “Clean and affordable home energy solutions is a crucial component in the transition to an inclusive net-zero economy. We are pleased to support Aira on this important initiative to accelerate heat pump adoption and the energy shift. This partnership not only aligns with our strategic goals of fostering sustainable investments but also represents the opportunity to develop an innovative asset class in Europe."
Ane Launy, Aira Group CFO, said: “We are immensely proud to have secured this €200m warehouse financing facility with BNP Paribas. The facility is a crucial milestone in our fundraising journey and the funds will play a pivotal role in addressing the high upfront costs that customers are currently facing. The support from BNP Paribas underscores the essential role of innovative financing in driving the energy transition and highlights the growing recognition of home energy solutions in combatting climate change and advancing energy security. With this facility, we are better equipped to meet the rising demand for heat pumps in Europe and help pave the way for a significant reduction in residential carbon footprints.”
For further questions
Pamela Brown, Group CMO
+44(0)7884 313193
About Aira
Aira provides clean energy-tech solutions to consumers and is set to become Europe’s number one direct-to-consumer brand within the industry. Aira accelerates the electrification of residential heating with intelligent clean energy-tech to enable the net zero future we all need. With Aira, consumers across Europe have a go-to-provider for complete home energy saving solutions, with intelligent heat pumps at the heart. Aira's vertically integrated model, combined with our consumer-centric monthly payment plan that requires no upfront cost, enables best-in-class consumer economics and cost leadership. Aira’s mission is to empower people to join the clean energy revolution, one home at a time. Founded in Stockholm, Sweden, by Vargas Holding and backed by climate and innovation investors including Altor, the Burda family, Collaborative Fund, Creades, Kinnevik, Lingotto, Nesta Impact Investments, Statkraft Ventures, and Temasek.
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