Loan characteristics

Long-term complementary financing

NIB is a flexible partner responding to customers' needs and providing tailor-made loans and guarantees. Most of NIB's commitments concern loans.

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Worldwide lending

• NIB has operations in its Nordic and Baltic member countries and in some 30 other countries. Outside the membership area, projects financed by NIB should be of mutual interest to the country of the borrower and the member countries. 

Private and public borrowers

• NIB provides loans and guarantees to private and public companies, governments, municipalities and financial institutions.

Scope of projects 

• NIB loans are granted for a special purpose, i.e. a project.
• NIB loans are usually used for the financing of larger projects. Normally, the total project value amounts to more than EUR 50 million. NIB channels financing to projects of small and medium-sized enterprises through intermediaries.
• A project to be financed might, for example, concern investments in infrastructure, such as energy and transport, improvement of the environment, research and development, improvement of manufacturing processes or the internationalisation of businesses. Examples of NIB-financed projects
• The proceeds of NIB loans can be used to cover any part of projects costs.

Projects promoting competitiveness and enhancing the environment

• NIB loans are provided to projects that strengthen competitiveness and enhance the environment.
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Competitive market terms

• NIB provides loans on commercially sound banking terms, i.e. repayable loans and guarantees with no subsidy element. NIB does not provide grants or financial aid.

Complementary financing

• A NIB loan or guarantee for a project should generally not exceed 50 per cent of the total cost of the project. 
• NIB strives to complement other financing sources and add value through its long-term financing and status as an international financial institution.

Long maturities

• NIB extends long-term loans. As a general rule, all loans are limited to the economic life of the asset or the relevant underlying contracts supporting the financing.

Experience in project and structured finance

• NIB may assist its customers with project and structured finance, for example using the Public Private Partnership model. NIB has experience in complex financing structures working in cooperation with other international financial institutions and public- and private-sector lenders. 
  

Currency flexibility

• The borrower can choose between most convertible currencies.

Interest rates and expenses

• The interest rate is set on a fixed or floating basis, as preferred by the borrower. Expenses comprise commitment and arrangement fees.

Adequate security

• NIB requires adequate security for loans granted. There are no specific requirements regarding the types of security that NIB may accept. NIB may grant unsecured loans to counterparties that are sufficiently creditworthy. In such lending NIB requires various undertakings by the counterparty as part of the loan documentation. 

Potential grace periods

• Grace periods are considered on the merits of the project.

Thorough analysis and monitoring 

• Before granting a loan, NIB makes a thorough assessment of the project's technical feasibility and economic viability. The analysis also includes environmental aspects. Loans are followed up on and project implementation is monitored.

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