Iceland. Isavia ltd

Date of agreement:17 Dec 2014
Customer:Isavia ltd
Amount in EUR:EUR 32 million
Maturity:20 years
NACE sector / loan type:Air transport


The loan has been provided for increasing the capacity of Keflavik International Airport. The investment programme includes new lanes in security control, expanding the arrival and check-in areas, and installing a new baggage handling system. The airport will receive new aircraft parking stands and bus terminal gates, and it will renew runways and navigation systems for the airfield. The total amount of investments planned for 2014 to 2016 is EUR 100 million.

The investment in increasing the capacity is necessary to meet the continuously growing number of passengers. The growth is expected to continue at a constant pace in the coming years.

Isavia is a state-owned limited company responsible for the development and operations of all public airports in Iceland. The company also manages air traffic in the Iceland Air Control Area of 5.4 million square kilometres, including the upper airspace over Greenland and a large part of the North Atlantic. Keflavik Airport is the country’s main international airport. In 2014, Isavia services around 20 international airlines at Keflavik International Airport, flying between Iceland, Europe and North America on a regular basis. Isavia employs approximately 820 people, including employees of subsidiaries.

Fulfilment of NIB's mandate


The project will improve Keflavik Airport’s service reliability and allow for higher flight frequency in peak hours of operation. The benefits from the removal of capacity constraints are widely distributed mainly through the tourism industry in Iceland, which accounted for 23% of the exports of goods and services from Iceland in 2013. The increase in capacity also opens up more business opportunities for the airline industry of Iceland, which can take advantage of the favourable location of Reykjavik in transatlantic flight connections.


The project will potentially cause increased air traffic to the airport. The increased traffic will prompt an increase in emissions of carbon dioxide.

Sustainability summary

The project’s potential for a direct negative environmental impact is small. However, increased air traffic to Keflavik will cause a negative environmental impact.

The aprons must be served with fuel and de-icing agents will be used. The fuel system is adequate and the wastewater system is being reconstructed to better be able to take care of accidental spills of oil and fuels on the runways and aprons. Presently, only potassium formate, an environmentally harmless substance, is used for the de-icing of the runways.

The largest environmental threat is the former use of poly- and perfluorinated alkylated substances present in a product called “aqueous film-forming foam” used for fire extinguishing purposes. These substances are toxic, very persistent and accumulate in ecosystems.

Press release

NIB finances expansion of Keflavik Airport in Iceland

Press release

Norræni fjárfestingarbankinn fjármagnar stækkun Keflavíkurflugvallar

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