NIB co-hosts infrastructure investment seminar for Swedish municipalities

With a loan to Tekniska verken i Linköping, NIB is financing a new combined heat and power plant Gärstadverket in central Sweden (see press release). Photo: Åke Lindman/TVAB

“Now is a good time for increasing infrastructure investments,” said Klas Eklund, Senior Economist at SEB, at a seminar that NIB co-hosted for public authorities in Sweden. About seventy decision-makers from many Swedish regions confirmed the growing demand for long-term financing required for infrastructure projects.

The seminar, arranged by the International Project Finance Association (IPFA), gathered decision-makers from municipal and country authorities, as well as municipally owned enterprises and leading PPP and infrastructure developers from many regions of Sweden.

“We saw a keen interest in NIB as a reliable provider of the long-term financing required to modernise municipal infrastructure”, says Tarja Kylänpää, Senior Director, Head of Infrastructure, Transportation & Telecom Group at NIB.

The Bank’s representatives shared NIB’s experience in financing a wide range of infrastructure investments in Sweden, including the most recent projects. Furthermore, NIB gave an overview of its Environmental Bond Programme.

“This is the fourth in a series of events NIB has organised and co-hosted covering areas such as PPP, local government financing and pension fund investment. All have been well attended and the participants are showing interest in NIB’s long-term financing for the public sector to meet future infrastructure investment needs”, says Joakim Holmström, Senior Manager, Transaction and Portfolio Management Unit, who has participated in organising the two last events.

At the seminar, Klas Eklund, Senior Economist at SEB, quoted a recent International Monetary Fund (IMF) study that suggests that in countries with infrastructure needs, now is a good time for an infrastructure push.

According to the IMF study, “The time is right for an infrastructure push: borrowing costs are low and demand is weak in advanced economies … Debt-financed projects could have large output effects without increasing the debt-to-GDP ratio, if clearly identified infrastructure needs are met through efficient investment.”

The seminar “Infrastructure Financing for Municipalities, County Councils and Municipally Owned Enterprises” arranged in Stockholm on 15 October was co-sponsored by SEB, Standard & Poor’s and NIB. IPFA is an international, independent, non-profit association dedicated to promoting project finance.

Read more:

The Time Is Right for an Infrastructure Push (IMF)

NIB’s lending in Sweden (energy and infrastructure projects)