Presentation Meeting 2 Ljungberg NiB
NIB – the International Financial Institution of the Nordic and Baltic countries Presentation for BSPC Green Growth and Energy Efficiency March 2, 2012 Senior Director Johan Ljungberg
NORDIC INVESTMENT BANK
02 MARCH 2012
Basic information • Founded by the Nordic countries in 1975 (active since 1976) • The Baltic countries joined in 2005 • Headquarters in Helsinki • Lending in both member countries and non-member countries • Funds acquired on the international capital markets • AAA/Aaa credit rating In 2009, NIB Headquarters joined the WWF Green Office network.
NORDIC INVESTMENT BANK
NIB Headquarters in Helsinki, Finland.
02 MARCH 2012
Ownership structure The Bank's member countries have subscribed to its authorised capital in proportion to their gross national income.
Sweden 34.6%
Authorised capital to EUR 6,142m as of 16 February 2011
Norway 21.5% Denmark 21.1% Finland 17.7% Lithuania 2.0% Latvia 1.3% Iceland 0.9% Estonia 0.9%
NORDIC INVESTMENT BANK
NIB's Board of Governors has decided to increase the Bank's authorised capital by EUR 2 billion. The capital increase has been allocated to the unpaid portion.
02 MARCH 2012
Mission and mandate
• NIB promotes sustainable growth of its member countries by providing long-term complementary financing to − projects that strengthen competitiveness − projects that enhance the environment
NORDIC INVESTMENT BANK
02 MARCH 2012
Strengthening competitiveness • Sustainability increases the level of wealth and prosperity • All projects considered for financing undergo a competitive assessment of • direct effects - upgrading or expanding a company's capital base, for example by installing or replacing production equipment;
• wider direct effects - improvements in infrastructure, for example by construction of new highways, railroads and ports;
• indirect effects - demonstration effects, for example by applying global best practice technologies
NORDIC INVESTMENT BANK
Metro line in Helsinki. Photo: City of Helsinki (Finland)
02 MARCH 2012
Enhancing the environment • NIB defines loans to projects with significant direct or indirect positive environmental impacts as environmental loans • Two environmental lending facilities − BASE framework (The Baltic Sea Environment Financing Facility) EUR 500m − CLEERE framework (Climate Change, Energy Efficiency and Renewable Energy Facility) EUR 3bn Restoring the ecological health of the Baltic Sea. Southwest Wastewater Treatment Plant in St. Petersburg, Russia.
NORDIC INVESTMENT BANK
02 MARCH 2012
Focus sector: Energy • The energy sector's main focus is on energy efficiency, integrated energy networks and sustainable and sufficient generation capacity. • In April 2010, NIB adopted an Energy Strategy to increase proactivity and to ensure mandate compliance. NIB-financed projects are also in line with the European* objectives in this sector. Project examples: Transmission lines, improved district heating, renewable energy projects, energy efficiency projects in buildings
Photo: Eidsiva Energi AS (Norway)
*EU and EEA NORDIC INVESTMENT BANK
02 MARCH 2012
Focus sector: Environment • Economic growth and a healthy environment go hand in hand • NIB has one of the most explicit environmental mandates among the large IFIs
Environmental loans outstanding as a share of total loans, EUR million 16 000 14 000 12 000 10 000 8 000 6 000 4 000 2 000
0 2006 2007 2008 2009 2010
Other loans
NORDIC INVESTMENT BANK
31 Aug 2011
Environmental loans
02 MARCH 2012
Focus sector: Transport, logistics and communications • Effective transport, logistics and communications are essential for ensuring competitiveness • In early 2011, NIB adopted a lending Strategy for transport, logistics and communications • Many projects also have significant environmental benefits Project examples: Road constructions, railways, airports, broadband and mobile phone networks NORDIC INVESTMENT BANK
Photo: SJ AB (Sweden) 02 MARCH 2012
Focus sector: Innovation • Lending to activities related to innovation processes • R & D projects
• Lending via financial intermediaries
Photo: Novozymes (Denmark) NORDIC INVESTMENT BANK
02 MARCH 2012
NIB in the member countries Helsinki City Transport, Finland Svartsengi geothermal power plant, Iceland. Elkem Solar AS (subsidiary of Orkla AS), Norway
Estlink, Estonia
Boliden, Sweden
DONG A/S, Denmark NORDIC INVESTMENT BANK
City of Vilnius, Lithuania
Railway company VAS Latvijas Dzelzcels , Latvia MAR-12 11
Non-member country lending • Lending in a number of nonmember countries with high potential in terms of project participant interest and mandate fulfilment • Priority area: the Baltic Sea region, including Poland, Russia, Ukraine and Belarus
• Major emerging economies: Brazil, China, India, South Africa, Vietnam NORDIC INVESTMENT BANK
02 MARCH 2012
NORDIC INVESTMENT BANK
02 MARCH 2012
Basic information • Founded by the Nordic countries in 1975 (active since 1976) • The Baltic countries joined in 2005 • Headquarters in Helsinki • Lending in both member countries and non-member countries • Funds acquired on the international capital markets • AAA/Aaa credit rating In 2009, NIB Headquarters joined the WWF Green Office network.
NORDIC INVESTMENT BANK
NIB Headquarters in Helsinki, Finland.
02 MARCH 2012
Ownership structure The Bank's member countries have subscribed to its authorised capital in proportion to their gross national income.
Sweden 34.6%
Authorised capital to EUR 6,142m as of 16 February 2011
Norway 21.5% Denmark 21.1% Finland 17.7% Lithuania 2.0% Latvia 1.3% Iceland 0.9% Estonia 0.9%
NORDIC INVESTMENT BANK
NIB's Board of Governors has decided to increase the Bank's authorised capital by EUR 2 billion. The capital increase has been allocated to the unpaid portion.
02 MARCH 2012
Mission and mandate
• NIB promotes sustainable growth of its member countries by providing long-term complementary financing to − projects that strengthen competitiveness − projects that enhance the environment
NORDIC INVESTMENT BANK
02 MARCH 2012
Strengthening competitiveness • Sustainability increases the level of wealth and prosperity • All projects considered for financing undergo a competitive assessment of • direct effects - upgrading or expanding a company's capital base, for example by installing or replacing production equipment;
• wider direct effects - improvements in infrastructure, for example by construction of new highways, railroads and ports;
• indirect effects - demonstration effects, for example by applying global best practice technologies
NORDIC INVESTMENT BANK
Metro line in Helsinki. Photo: City of Helsinki (Finland)
02 MARCH 2012
Enhancing the environment • NIB defines loans to projects with significant direct or indirect positive environmental impacts as environmental loans • Two environmental lending facilities − BASE framework (The Baltic Sea Environment Financing Facility) EUR 500m − CLEERE framework (Climate Change, Energy Efficiency and Renewable Energy Facility) EUR 3bn Restoring the ecological health of the Baltic Sea. Southwest Wastewater Treatment Plant in St. Petersburg, Russia.
NORDIC INVESTMENT BANK
02 MARCH 2012
Focus sector: Energy • The energy sector's main focus is on energy efficiency, integrated energy networks and sustainable and sufficient generation capacity. • In April 2010, NIB adopted an Energy Strategy to increase proactivity and to ensure mandate compliance. NIB-financed projects are also in line with the European* objectives in this sector. Project examples: Transmission lines, improved district heating, renewable energy projects, energy efficiency projects in buildings
Photo: Eidsiva Energi AS (Norway)
*EU and EEA NORDIC INVESTMENT BANK
02 MARCH 2012
Focus sector: Environment • Economic growth and a healthy environment go hand in hand • NIB has one of the most explicit environmental mandates among the large IFIs
Environmental loans outstanding as a share of total loans, EUR million 16 000 14 000 12 000 10 000 8 000 6 000 4 000 2 000
0 2006 2007 2008 2009 2010
Other loans
NORDIC INVESTMENT BANK
31 Aug 2011
Environmental loans
02 MARCH 2012
Focus sector: Transport, logistics and communications • Effective transport, logistics and communications are essential for ensuring competitiveness • In early 2011, NIB adopted a lending Strategy for transport, logistics and communications • Many projects also have significant environmental benefits Project examples: Road constructions, railways, airports, broadband and mobile phone networks NORDIC INVESTMENT BANK
Photo: SJ AB (Sweden) 02 MARCH 2012
Focus sector: Innovation • Lending to activities related to innovation processes • R & D projects
• Lending via financial intermediaries
Photo: Novozymes (Denmark) NORDIC INVESTMENT BANK
02 MARCH 2012
NIB in the member countries Helsinki City Transport, Finland Svartsengi geothermal power plant, Iceland. Elkem Solar AS (subsidiary of Orkla AS), Norway
Estlink, Estonia
Boliden, Sweden
DONG A/S, Denmark NORDIC INVESTMENT BANK
City of Vilnius, Lithuania
Railway company VAS Latvijas Dzelzcels , Latvia MAR-12 11
Non-member country lending • Lending in a number of nonmember countries with high potential in terms of project participant interest and mandate fulfilment • Priority area: the Baltic Sea region, including Poland, Russia, Ukraine and Belarus
• Major emerging economies: Brazil, China, India, South Africa, Vietnam NORDIC INVESTMENT BANK
02 MARCH 2012
