Iceland. Íslandsbanki HF
| Date of agreement: | 21 Mar 2022 |
|---|---|
| Country: | Iceland |
| Customer: | Íslandsbanki HF |
| Amount in USD: | USD 87 million |
| Amount in EUR: | EUR 78.7 million |
| Maturity: | 5 years |
| NACE sector / loan type: | Financial intermediation, except insurance and pension |
Project
The loan has been granted for on-lending to small and medium-sized enterprises (SMEs) and environmental projects in Iceland.
Most enterprises in Iceland fall under the SME definition. Íslandsbanki has a strong market position, maintaining a 37% share in SMEs in the country, and is well equipped to finance smaller businesses.
The Bank will on-lend at least 70% of the loan proceeds to environmental projects that meet the requirements of Íslandsbanki’s own Sustainable Financing Framework. Sustainalytics has provided a second opinion on the framework and has concluded that the framework is aligned with the Green Bond Principles.
Íslandsbanki HF is one of the leading universal banks in Iceland. The bank is led by three business divisions: Personal Banking, Business Banking and Corporate & Investment Banking. The Icelandic government owns 65% of the shares in the bank.
Fulfilment of NIB's mandate
Productivity:
The project will alleviate credit constraints for small and medium-sized companies and facilitate productivity growth in Iceland.
Environment:
At least 70% of the loan programme will be allocated to environmental projects defined as green in the Íslandsbanki’s Sustainable Financing Framework, which NIB considers mostly in line with the Bank’s own definition of green projects.
Utilising the Íslandsbanki’s framework allows a more streamlined and effective process for project identification and impact reporting. Promoting the use of a financial institution’s own frameworks may be beneficial for further sustainable finance initiatives.
Sustainability summary
Projects financed through a financial intermediary are required to fulfil the requirements defined in the NIB’s Sustainability Policy.
