Interim Report, January – August 2002
ENVIRONMENT AND ENERGY INVESTMENT FINANCING
The Nordic Investment Bank (NIB) posts good results for the first eight months of 2002. Net interest income came to EUR 100 million at period-end, compared with EUR 98 million for the same time period last year. NIB posted EUR 97 million in profits for the period (corresponding period in 2001: EUR 83 million). Total assets came to EUR 14.9 billion, compared with EUR 15 billion at year-end 2001. Net liquidity was EUR 2,287 million at the end of the period, compared with EUR 2,641 million at year-end 2001.
NIB distributed EUR 39 million in profits from 2001 to its owners, the Nordic countries.
During the first eight months of the year NIB disbursed loans and issued guarantees amounting to EUR 937 million, compared with EUR 927 million in the same period of 2001. Loans outstanding amounted to EUR 9,929 million as of 31 August 2002, as opposed to EUR 10,067 million at year-end 2001.
Focus on energy sector
Manufacturing is the largest sector in NIB’s Nordic lending operations. In the pulp and paper industry, NIB has during the first eight months of the year participated in the financing of environmental investments and cross-border corporate acquisitions. NIB has financed several investments in the energy sector in, for example, biofuelled power plants in Finland, in wind power in Denmark, and in expansion of power transmission networks in Denmark, Norway and Iceland.
NIB’s international lending operations were dominated by loans to infrastructure investments, most noteworthy in transportation and communication as well as the energy sector. NIB has been at the forefront in supporting significant investments of the Baltic power companies for wide-ranging modernisation of power production, transmission, and distribution. NIB signed loans with the state-owned Estonian and Latvian energy companies, and has thus become the largest individual external financier for the Baltic energy sector. The loan to the state-owned Estonian power company is intended for projects such as modernisation of the power stations in Narva and electrical transmission and distribution. The investments are targeted not only at making major reductions in sulphur dioxide and carbon dioxide emissions, but also at seeing that the EU’s emission guidelines are adhered to.
Raising the environmental lending ceiling
Environmental loans constitute one of the cornerstones in NIB’s lending operations. In June, the Nordic Council of Ministers passed a resolution raising the lending ceiling for the Bank’s special Environmental Investment Loan facility for the neighbouring regions from EUR 100 million to EUR 300 million. This increase is vital for enabling NIB to be an active participant in the NDEP, the Northern Dimension Environmental Partnership.
The NDEP’s mission is to coordinate and make efficient use of available financing for urgent environmental projects with cross-border effects within the Northern Dimension area. To begin with, the NDEP will target its work in northwestern Russia and the Kaliningrad region. NIB held the Partnership’s chairmanship during the first year of its operations, up until July 2002.
High quality of the Bank’s portfolio
The credit quality of NIB’s loan portfolio and its financial counterparties continues to be maintained at a high and stable level. During the first eight months of 2002, NIB posted EUR 1.2 million in identified loan loss provisions in respect of two separate transactions.
NIB expects the favourable results for 2002’s first eight months to continue for the remainder of the year.
NIB made new borrowings in the international capital markets corresponding to EUR 1,679 million in the first eight months of 2002, as against EUR 1,889 million the same time last year. The Japanese yen, the US dollar, the new Taiwanese dollar, the Hong Kong dollar, and the euro have been the period’s most important borrowing currencies. NIB also carried out a borrowing transaction in Icelandic kronur with a public bond issue. This was NIB’s first bond issue on the domestic Icelandic market.
NIB’s Financial Statements are prepared in accordance with International Accounting Standards (IAS).
NIB’s interim report for January – August 2002 is available here (PDF).
Key figures (in EUR million)
| 1-8/2002 | 1-8/2001 | 1-12/2001 | |
| Net interest income | 100 | 98 | 147 |
| Profit | 97 | 83 | 131 |
| Loans disbursed and guarantees issued | 937 | 927 | 1,686 |
| New loan agreements | 1,020 | 953 | 1,795 |
| New debt issues | 1,679 | 1,889 | 2,099 |
| Profit / average equity (%) | 9.9 | 9.1 | 9.5 |
| 31 Aug 2002 | 31 Aug 2001 | 31 Dec 2001 | |
| Loans outstanding | 9,929 | 9,460 | 10,067 |
| Total assets | 14,892 | 15,245 | 15,024 |
| Net liquidity | 2,287 | 3,421 | 2,641 |
| Number of employees | 141 | 135 | 137 |