NIB Nordic Investment Bank

Iceland. Akureyri Municipality. Energy and water

Date of loan: 16 April 2007
Country: Iceland
Borrower: Akureyri Municipality
Sector/loan type: Energy and water

Project:
The loan totalling EUR 9 million will be used for onlending to Akureyri's energy company Norðurorka to finance three projects in geothermal district heating and power distribution in the Eyjafjörður area. The first project, Reykjaveita, provides for building a new district heating system to supply hot water to two smaller municipalities. The second project is a new drill hole to supply Akureyri with hot water. The third project is the extension of the distribution network of electricity and water to Akureyri's new residential and commercial areas. Akureyri is the biggest municipality in Iceland outside of the capital area with approximately 20,000 inhabitants. Akureyri has developed into an educational and cultural centre for the non-capital area. The loan will be utilised to finance projects that meet NIB's eligibility criteria under the competitiveness and environmental mandates.

Environmental summary:
The geothermal expansion projects of Akureyri municipality will have a positive environmental impact. The new district heating possibilities will replace the use of direct electricity heating and the firing of oil-fuelled boilers. The investments help to improve the energy infrastructure in Iceland by utilising renewable local energy resources. It can be estimated that the decrease in the use of fossil fuel and the usage of district heating as the source of heating instead of direct electricity will reduce the emissions of CO2. A 50 % share of the project qualifies as an environmental investment.

Back to previous page

  • AR2013

News

NIB’s USD 1bn global benchmark priced

On 2 April, NIB priced a long 5-year global USD 1 billion benchmark transaction.

3 Apr 2014

NIB’s CFO Juha Kotajoki resigns

Juha Kotajoki, Vice-President, Head of Risk & Finance and CFO of the Nordic Investment Bank, has resigned from his position.

26 Mar 2014

NIB in 2013: Strong results despite stagnant markets

Despite the stagnant investment climate, NIB recorded a EUR 217 million profit in 2013. New loans were allocated to projects that are relevant to the competiveness and environment of the Nordic–Baltic region.

11 Mar 2014


MORE NEWS