21 Sep 2012

NIB finances increased hydropower capacity in Norway

NIB has signed a EUR 50 million loan agreement with the energy company Agder Energi AS to finance increased hydropower production in Norway.

The loan agreement has a maturity of 14 years. The project is expected to help raise the annual production capacity by 175 GWh.

The capacity increase will be achieved by constructing a new power plant and by building tunnels to utilise the water supply. Furthermore, the production capacity of one of the power plants will be upgraded by installing a new turbine wheel that will use water as lubrication instead of oil. In addition, a new transformer station will be installed to support the increased power production and prepare for new access to the central transmission network.

“NIB’s loan to Agder Energi AS provides the regions with a broader supply of electricity in an environmentally friendly way, conforming with NIBs mandate,” says Henrik Normann, NIB President and CEO.

Majority-owned by 30 local municipalities, Agder Energi AS is the fourth largest hydroelectric producer in Norway. Overall, the company’s operations include the production, distribution, and sale of hydropower and energy-related services.

The Nordic Investment Bank (NIB) is the common international financial institution of the eight Nordic and Baltic countries. NIB provides long-term financing 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

Vidar Omholt, Senior Manager, Origination, tel. +358 40 708 6989,

Dan-Roald Steinnes, Communications Unit, tel. +358 50 577 9497,