All agreed loans

Norway. NorgesGruppen ASA

Date of loan: 27 Nov 2009
Country: Norway
Customer: NorgesGruppen ASA
Amount in NOK: NOK 270 million
Amount in EUR: EUR 31.8 million
Maturity: 10 years
NACE sector / loan type: Supporting and auxiliary transport activities
Business area: Industries and services

Project

The loan has been provided for financing the expansion of the company's distribution hub, which is located about 40 kilometres south of Oslo. The enlarged distribution centre will improve the company's logistics infrastructure and its cost efficiency in the transportation of goods. Higher load levels for trucks will reduce the kilometres driven, and it is estimated that transportation needs can be reduced by approximately 20%, reducing CO2 emissions accordingly.

Furthermore, the new main hub is located in an area developed for this type of business, thus minimizing the impact on surrounding areas.

Sustainability summary

The main environmental issues are transport, the utilisation of energy and the use of land. The use of energy for the extended hub is expected to exceed the current use for the existing regional storages as well as what can be achieved by using best practices to minimise the use of energy. No sensitive location is present in the vicinity of the site for the extended hub.

The reduction in the volume of road transportation is estimated to be 20%, which is equivalent to 3-5 million kilometres per year, and will lead to a reduction of CO2 emissions.

The overall environmental impact of the project is assessed as positive.