Norway. NFI Borrower AS

Date of agreement:31 Mar 2022
Country:Norway
Customer:NFI Borrower AS
Amount in EUR:EUR 84.71 million
Maturity:7 years
NACE sector / loan type:Water transport

Financing from NIB Environmental Bond proceeds

NEB-eligible share: 100%

NEB category: Clean transport solutions

Amount disbursed: EUR 26.5 million

Note: For loans in other currencies than EUR, the equivalent in EUR is based on the exchange rate effective for the disbursement. Read more about the NIB Environmental Bonds

Project

NIB has provided the loan in both euros and kroner for a ferry capital expenditure programme 2021-2026 in Denmark and Norway. The investment programme includes several types of vessels, of which NIB’s part is limited to the purchase of electric ferries, retrofitting to electric propulsion and related onshore electric infrastructure.

NFI Borrower AS is a holding company, owned by EQT Infrastructure, incorporated in Norway in early 2022 to own two ferry operators: Torghatten AS of Norway, and Molslinjen A/S of Denmark.

Combined in one corporate group under a unified ownership, this constitutes 107 vessels on 68 routes. The combined operation would be the largest in its segment in the Nordic countries.

NFI Borrower AS is owned by the Swedish private equity fund EQT AB.

Fulfilment of NIB's mandate

Productivity
The ferry system is a core infrastructure service in places with few alternatives. Upgrades and expansion investments in the system therefore improve transport connections, especially, in sparsely populated areas.

Electric ferries will provide the company with higher operating margins due to savings in fuel costs and higher contract values, which should compensate the company for higher capital expenditures.

Environment
The investment programme for the Group will include several types of vessels. NIB’s part is restricted to electric ferries, retrofitting to electric propulsion and related onshore electric infrastructure.

There will be a strict reporting requirement for the client on allocations to the planned investment programme.

Sustainability summary

No significant issues with the procurement and deployment of electrified vessels.

Press release
07.04.2022

NIB finances EQT-backed Molslinjen and Torghattens’ sustainability transformation in Denmark and Norway

Press release

NIB finansierar EQT-ägda Molslinjen och Torghattens hållbarhetsomvandling i Danmark och Norge