NIB Environmental Bonds

NIB has an explicit environmental mandate from our Nordic and Baltic owners to promote environmentally friendly projects. 

The Bank not only finances investments that improve the environment, but also analyses the environmental impacts of each project considered for financing. As a result, each loan project under consideration for financing undergoes an individual assessment of its potential environmental impact, including ecological and social aspects, as an integral part of NIB's mission of promoting the sustainable growth of its member countries.

A considerable part of our total loan portfolio is classified as environmental loans. We even have two special environmental lending facilities: the Baltic Sea Environment (BASE) and The Climate Change, Energy Efficiency and Renewable Energy (CLEERE) frameworks.

Addressing environmental challenges is a concern shared among a growing number of fixed-income investors worldwide. In order to respond to the investors' readiness to support environmentally sustainable projects, NIB has introduced a framework which allows investors to provide funds for the Bank's environmental lending.

Funds raised through the NIB Environmental Bond fixed-income issuance will be held in a separate portfolio until they are disbursed to eligible projects.

Projects qualify as eligible if they meet strict environmental sustainability criteria and are aimed at (but not limited to):

• reducing emissions to the air (mainly CO2, SOx, NOx, dust, heavy metals and dioxines) by promoting energy efficiency, renewable energy, public transport solutions, recycling (the list is not exhaustive);
• reducing discharges to water (mainly P, N, BOD, COD and heavy metals) by improving wastewater treatment and cutting down pollutant runoff from agriculture.

The first NIB Environmental Bond has been priced and the settlement date is 22 November 2011. The bond is targeted at Japanese retail and institutional investors, and is arranged by Daiwa Securities Capital Markets Co.

NIB Environmental Bonds:

Trade date: 28 August 2012
Payment date: 7 September 2012
Maturity date: 7 September 2032
Issue amount: SEK 500,000,000.00
Issue price: 98.807%
Coupon: 2.75% 

Trade date: 27 October 2011
Payment date: 22 November 2011
Maturity date: 19 November 2015
Issue amount: ZAR 1,006,400,000.00
Issue price: 99.94%
Coupon: 4.90%
Swapped into EUR 92 million

Projects financed by NIB Environmental Bonds

Payment date: 15 May 2013
Customer: Vimmerby Energi & Miljö AB
Country: Sweden
Share of loan bond-financed: 100%
Amount: SEK 167 million* (EUR 20 million)
* disbursed amount

Payment date: 2 April 2013
Customer: SKF AB
Country: Sweden
Share of loan bond-financed: 25%
Amount: EUR 25 million

Payment date: 22 March 2013
Customer: Helsinki Region Environmental Services Authority (HSY)
Country: Finland
Share of loan bond-financed: 100%
Amount: EUR 15 million 

Payment date: 7 December 2011
Customer: DONG Energy A/S
Country: Denmark
Share of loan bond-financed: 38%
Amount: EUR 92 million
See project video

For further information on NIB Environmental Bonds, please contact:

Jens Hellerup, Director, Head of Funding and Investor Relations
  

Telephone: +358 9 618 11401

Funding highlights