28 Apr 2022

Strong first-quarter demand for NIB’s long-term financing

On 28 April 2022, NIB published its interim management statement for the first quarter of 2022. During the three-month period, NIB saw a very strong demand for its long-term financing, with a total of EUR 1,222 million in new agreed loans, up from EUR 257 million in the first quarter of 2021. NIB disbursed EUR 1,107 million in the period, compared to EUR 725 million in the same period one year ago.

The loans agreed were widely distributed across industries and countries and include sustainability-linked loans, which create financial incentives for our customers to further strengthen their climate efforts. As an example, NIB signed a ten-year sustainability-linked loan agreement with Borregaard ASA in March to create financial incentives for the client in achieving agreed and relevant climate, environmental and social targets.

To meet the demand for the Bank’s financing, NIB raised EUR 4.2 billion in new funding in the first quarter. Amongst other transactions, the Bank issued its inaugural NIB Environmental Bond (NEB) denominated in Danish Kroner (DKK). This eight-year DKK 2 billion bond was driven by demand from domestic ESG focused investors. The Bank has issued a total of EUR 6.2 billion in NIB Environmental Bonds under its NEB Framework since 2011. NIB issued a three-year benchmark bond of USD 1.25 billion in March.

The net profit for the January to March period amounted to EUR 21 million compared to EUR 35 million in 2021 as volatility in financial markets led to some unrealised losses on financial instruments used for hedging purposes. NIB remains in a strong financial position and our AAA/Aaa-rating was reaffirmed by Standard & Poor’s and Moody’s in April. NIB’s credit rating reflects its high asset quality, solid liquidity and capital adequacy, strong balance sheet and ownership.

“When we published our 2021 Financial Report on 22 February, we were cautiously looking forward to a post-covid era. Little did we know that within 48 hours, Europe would be plunged into a new crisis as Russia launched a full-blown attack on Ukraine. We are deeply horrified by the loss of human life and destruction brought by the war. NIB stands by the Ukrainian people during these terrible times. We have announced that we are ready to support the efforts of our clients and member countries to deal with the consequences of the war. There are at least two important goals, to help make the Nordic and Baltic region independent of Russian fossil fuel sources, and to accelerate the green transition,” says André Küüsvek, NIB President and CEO.

The annual meeting of NIB’s Board of Governors is scheduled for 5 May. The meeting is set to approve the Banks annual accounts for 2021 and a proposed dividend of EUR 40 million to the Bank’s Nordic and Baltic member countries.

The NIB Q1 2022 Interim Management Statement is available here.

Key figures and ratios

Millions of eurosJan-Mar 2022Jan-Mar 2021Jan-Dec 2021
Net interest income5051201
Profit before net loan losses1536133
Net profit2135159
Loans disbursed1,1077252,440
Loans agreed1,2222571,852
Mandate fulfilment100%100%97%
Lending outstanding22,86522,19422,313
Total assets39,57537,75537,553
New debt issues4,2183,1577,028
Debts evidenced by certificates32,76931,34731,526
Total equity3,9993,8803,999
Equity/total assets10.1%10.3%10.6%
Net profit/average equity2.1%3.6%4.1%
Number of employees at period end220231221

NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.

For further information, please contact:
André Küüsvek, President & CEO, at +358 10 618 001, info@nib.int
Kim Skov Jensen, Vice President & CFO, at +358 50 473 4347, kim.jensen@nib.int
Jukka Ahonen, Senior Director, Head of Communications, at +358 10 618 0295, jukka.ahonen@nib.int