Åkerholm: Stronger capital base adds to NIB's lending capacity

The support of the owners adds to NIB's credibility and enables us to act already now, says NIB President Johnny Åkerholm commenting on the decision to increase the authorised capital of the Bank by EUR 2 billion as of early 2011.

Johnny Åkerholm, NIB President and CEO.

NIB's Board of Governors has decided that, following the subscription, the Bank's authorised capital will amount to EUR 6,142 million. The capital increase will be allocated to the unpaid portion of the authorised capital stock.

"The support by the owners adds to NIB's strong credibility on the global financial markets. This support gives us a possibility to expand," says Johnny Åkerholm, NIB President and CEO. The capital increase will, however, not lead to any quantum leap in the level of activity.

Mr Åkerholm highlights that with the increased capital NIB is better equipped to assist the Nordic and Baltic countries in supporting competitiveness and protecting the environment.

Stricter focus on mandate

"The owners have paid particular attention to high mandate compliance and the need to focus the Bank's activities in order for the Bank to provide a high added value," Mr Åkerholm explains.

The demand for long-term financing has increased during the financial crisis, and there are reasons to believe that it will remain high in the coming years, also after the current crisis is over.

"The Bank will continue expanding at more or less the same pace as in the last few years, and increasing the share of lending in the focus sectors defined by the mandate," Mr Åkerholm continues.

Within the energy sector, the emphasis will be on renewable energy forms, energy efficiency, increased integration and security of supply.

On the environmental front, financing will be directed towards mitigation and adaptation to climate change as well as towards the protection of the marine environment, particularly the Baltic Sea.

Within transport, logistics and communications, NIB will target transport corridors in the Nordic and Baltic area, logistics systems and the new generation of communications.

Innovation will also be supported by financing of R&D in both the private and public sectors.

"These issues have figured high on NIB's agenda in the last few years. A stricter focus on high-mandate on projects will require a higher degree of pro-activity in our everyday activities. We will continue to closely monitor and reassess the developments in the focus sectors to fine-tune the tools available to us on the market," concludes Mr Åkerholm.

September 2010

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