24 Jun 2008

NIB finances building of shopping centre in Stockholm

NIB and the Finland-based company Citycon have agreed on a loan amounting to EUR 30 million. Citycon will use the loan to finance the development of a shopping centre south of downtown Stockholm, in the district of Liljeholmen.

The new shopping centre will follow strict environmental standards and apply a whole building approach for sustainable property development, which were essential factors in NIB's decision to participate in the financing of the project. NIB's loan is an important addition to the project, which will cost in total EUR 180 million. The maturity of the loan is 10 years. The energy consumption of buildings and properties in the industrial countries is estimated at up to 40%.

"The new centre will take into account principles of sustainable property development by using the newest technology, with solutions for energy efficiency and water use. District heating and cooling will also enhance energy efficiency", says NIB's Vice-President Nils E. Emilsson.

Citycon is aiming for the international LEED rating (Leadership in Energy and Environment Design) for the construction of the shopping centre. The LEED rating requires, among other things, sustainable site development, water savings, energy efficiency and environmental-friendly choices of materials and resources.

"We are very happy to be able to fulfil the tight requirements of NIB's lending in the current market situation. This is a concrete example of the importance and benefits of sustainable activities. Sustainable site development has secured us long-term financing from a highly valued lender", says Citycon's Chief Financial Officer Eero Sihvonen.

The shopping centre in Liljeholmen is in the midst of a growing residential area with excellent public transportation connections. The building work on the new shopping centre started in May 2007 and when it is finalised, according to schedule in October 2009, the centre will have a leasable area of 28,000 square metres for some 90 businesses. The shopping centre in Liljeholmen is Citycon's largest single development project.

The loan agreement was signed 24 June 2008 in Helsinki.

Nordic Investment Bank (NIB)
NIB is a multilateral financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor's and Moody's.

Citycon Oyj
Citycon is an expert and partner in retail premises, serving consumer customers together with its tenants. The aim is to produce versatile, attractive, inspirational and functional shopping environments for consumers. Citycon is the market leader in the Finnish shopping centre business, owning a total of 22 shopping centres in Finland. In Sweden, Citycon owns eight shopping centres and, in the Baltic Countries, three. In addition, the company owns 53 other retail properties, 46 in Finland and seven in Sweden.

For more information, please contact:
NIB: Kim Krokfors, Senior Manager, telephone +358 10 618 0517
Citycon Oyj: Eero Sihvonen, CFO, telephone +358 50 579 137
or Ulf Attebrant, Vice President, Swedish Operations, telephone +46 8 522 80 313