Norway. Borregaard ASA

Date of agreement:24 Mar 2022
Customer:Borregaard ASA
Amount in USD:USD 50 million
Amount in EUR:EUR 45.48 million
Maturity:10 years
NACE sector / loan type:Manufacture of other organic basic chemicals


NIB provides the sustainability-linked loan to finance an operational transition to improve Borregaard’s sustainability performance. The sustainability-linked loan agreement creates financial incentives for the customer to further strengthen its climate, environmental and social efforts. The company will invest to reduce CO2 emissions and water effluents.

NIB and Borregaard have agreed on three key performance indicators (KPIs) to be achieved. The KPIs are core to Borregaard’s sustainability strategy. The margin under the loan agreement can be adjusted based on Borregaard’s progress on: (i) the Group’s 2030 target of reducing greenhouse gas emissions (Scope 1 and 2) as approved by the Science Based Target initiative, (ii) reduce emissions of organic compounds to the Glomma River to targeted levels and (iii) reduction of the Group’s total recordable injuries.

The targets set by Borregaard fit NIB’s mandate because they contribute to the environmental objectives of climate change mitigation and resource efficiency. The targets address material sustainability issues for Borregaard. The Group will report on the three selected KPIs annually. The first price adjustment is to be made based on the reported level as of 31.12.2026, and the price adjustments continue until the end of maturity in 2032.

Borregaard operates one of the world’s most advanced biorefineries. The Group provides sustainable products and solutions based on renewable raw materials and unique competence. In addition to its biorefinery in Sarpsborg, Borregaard has five production sites outside Norway producing lignin-based products. Borregaard employs close to 1,100 full-time equivalent employees in plants and sales offices in 13 countries in Europe, Asia, and the Americas. Borregaard ASA is listed on the Oslo Stock Exchange.

Press release

NIB signs sustainability-linked loan with Borregaard

Press release

NIB signerer bærekraftsrelatert lån med Borregaard