Aira Lands €200m Debt Financing to Turbocharge European Heat Pump Expansion

Aira, a green home heating solutions specialist, has clinched a significant €200 million debt financing facility from BNP Paribas, the renowned French banking institution. This financial injection is set to propel Aira's mission to expand its home heat pump financing offer to consumers across Europe.

Aira, which recently inaugurated its second clean tech hub in Manchester, UK, revealed that this financing support from BNP Paribas, announced yesterday, is their first venture into debt financing. The funds will primarily facilitate the installation of heat pumps in numerous homes across Germany.

Aira's innovative financing model aims to accelerate the adoption of clean home heating across Europe. This model allows customers to acquire a new heat pump without any upfront costs, with the technology being paid off through manageable monthly payments.

In addition to its European ambitions, Aira has pledged a £300 million investment in the UK. This substantial commitment is projected to generate 8,000 jobs over the next decade, underscoring Aira's goal to dominate the UK heat pump market.

Martin Lewerth, Aira Group's chief executive, said the latest financing support from BNP Paribas marked "a significant milestone for Aira as we endeavor to make heat pump technology accessible to every home through affordable monthly payment solutions."

"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," he added. "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, chief executive of BNP Paribas Group for the Nordic region, added: "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."