3 Jul 2020
EUR 60 million
Financial institutions and SMEs
|Date of agreement:||5 Oct 2018|
|Amount in USD:||USD 75 million|
|Amount in EUR:||EUR 64 million|
|NACE sector / loan type:||Loan programme|
|Business area:||Financial institutions and SMEs|
Landsbankinn hf. will onlend the financing provided under this loan programme to small and medium-sized enterprises (SMEs) in Iceland for investments and environmental projects. Examples of these projects are tourism (such as hotel and catering services), but also seafood processing and trading, healthcare, and house construction.
NIB’s additionality is that it can provide long-term financing in US dollars.
The loan programme with Landsbankinn is a channel for financing SMEs that NIB would not otherwise be able to lend to directly. Landsbankinn is well equipped to onlend the funds as corporates, most of which are SMEs, command 61% of its total loan portfolio. The largest sectors in the bank’s portfolio are tourism and real estate.
Landsbankinn has fully allocated its previous loan programmes with NIB, signed in 2015 and 2017.
Landsbankinn hf. is the largest universal bank in Iceland. Established in 2008, the bank is majority-owned by the National Treasury of Iceland.
The loan programme is set to alleviate credit constraints for SMEs and facilitate productivity gains. The loan allocations will have to fulfil a set of agreed eligibility criteria for loans and loan programmes to SMEs.
NIB’s Sustainability Policy and Guidelines determines each allocation of funds.