Iceland. Landsbankinn hf.
| Date of agreement: | 07 Dec 2023 |
|---|---|
| Country: | Iceland |
| Customer: | Landsbankinn hf. |
| Amount in USD: | USD 75 million |
| Amount in EUR: | EUR 68.8 million |
| Maturity: | 5 years |
Project
Landsbankinn hf. will on-lend the financing provided under this loan programme to small and medium-sized enterprises (SMEs) and environmental projects in Iceland.
Landsbankinn hf. is the largest universal bank in Iceland. The Bank was established in 2008 with a history going back to 1886. It is majority-owned by the Icelandic State Treasury.
Fulfilment of NIB's mandate
Since the bank is the largest in Iceland it has a systemically important role in providing services to SMEs. The loan might alleviate credit constrains which have been identified as a comparative disadvantage for small and medium sized companies and thereby facilitate productivity growth.
Given that SMEs are responsible for a considerable share in aggregate output and employment in the member area, improved access to financing that raise productivity can increase the competitive pressure and efficiency on the market. The corporate loan portfolio is distributed on fisheries, real estate, construction, tourism and manufacturing.
Sustainability summary
The borrower will be responsible for ensuring that the sub-projects meet NIB’s mandate criteria and submitting monitoring reports annually to NIB.
