5 Dec 2019
EUR 20 million
Financial institutions and SMEs
NIB has provided a SEK 175 million (EUR 19 million) loan to Swedish Tranås Stadshus AB to help finance the expansion of the district heating plant in Tranås in southern Sweden.
The loan, which has a 15-year maturity and will be onlent to the Tranås Stadhus subsidiary Tranås Energi AB, is earmarked for the financing of a new biofuel-based boiler.
The investment into a new 35-megawatt combined heat and power boiler will increase the capacity of Tranås Energi to 121 megawatts from 86 megawatts. The boiler will burn wood chips based on forest residuals and produce twice as much electricity and heat as the old boiler.
“This NIB loan helps the local authority in our member country to switch part of their energy sources from oil to biofuel and is an example of how a local authority can reduce its CO2 footprint. This fits well with the Bank’s mandate to strengthen competitiveness and enhance the environment,” says Henrik Normann, NIB President and CEO.
Tranås Stadshus AB is wholly owned by the municipality of Tranås. The municipality is in the county of Jönköping in southern Sweden, and has a population of around 18,000 people.
The Nordic Investment Bank is the common international financial institution of the eight Nordic and Baltic countries. NIB provides long-term financing to the energy, environmental, transport, logistics and communications, and innovation sectors for projects that strengthen competitiveness and enhance the environment. 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
Ulf Westergård, Senior Manager, Origination at +358 10 618 0234,
Dimitrijs Alehins, Senior Communications Specialist, tel. +358 10 618 0296,