3 Jul 2020
EUR 60 million
Financial institutions and SMEs
|Date of agreement:||3 Jul 2007|
|Customer:||Lánasjóður sveitarfélaga ohf. (Municipality Credit Iceland).|
|Amount in EUR:||EUR 20 million|
|NACE sector / loan type:||Financial intermediation, except insurance and pension|
|Business area:||Financial institutions and SMEs|
The loan totalling EUR 20 million is to co-finance 34 projects in Iceland's small rural municipalities within geothermal heating, waste disposal, water supply, and harbour facilities. The financing for these projects meets NIB's eligibility criteria under the competitiveness mandate with particular focus on infrastructure and environmental improvements. Lánasjóður sveitarfélaga ohf. (Municipality Credit Iceland) is owned by all of the country's 79 municipalities and operated as a credit institution. The principal objective of the company is to secure financing for the municipalities and their bodies on favourable terms by granting loans or guarantees. Lánasjóður sveitarfélaga ohf. adds value by helping smaller municipalities to have access to markets in the financing of infrastructure projects, thereby decreasing their funding costs.
The loan to Lánasjóður sveitarfélaga ohf. has positive environmental effects. It is expected that all projects financed under this loan agreement will receive the necessary permits and follow laws and regulations. A 50% share of the project qualifies as an environmental investment.