Denmark. P/F BankNordik
|Date of agreement:||12 Oct 2021|
|Amount in DKK:||DKK 400 million|
|Amount in EUR:||EUR 40.3 million|
|NACE sector / loan type:||Financial intermediation, except insurance and pension|
Arctic Financing Facility (read more): 100%
The loan has been provided for the Faroese BankNordik for on-lending to small and medium-sized enterprises and small mid-caps as well as environmental projects in the Faroe Islands and Greenland.
The seven-year loan facility will provide continued access to financing for SMEs and small mid-caps in various sectors as well as environmental projects in the Arctic region.
This is the second loan facility agreed between NIB and BankNordik; the first was signed in 2014.
Fulfilment of NIB's mandate
The project is expected to alleviate credit constraints, 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 NIB’s member countries, improved access to financing for projects that raise productivity can increase the competitive pressure and efficiency on the market.
The majority of the loan programme’s allocations are expected to go to SMEs, but eligible investments further include environmental projects with both private and corporate clients.
Projects that are financed through a financial intermediary are required to fulfil the requirements defined in NIB’s Sustainability Policy and Guidelines.