2 Sep 2009

NIB provides long-term loan for new trams and metro cars in Helsinki

NIB will provide the City of Helsinki with a long-term loan of EUR 50 million for financing investments in new low-floor trams and metro cars.

The City of Helsinki is aiming at further increasing tram traffic and other means of public transport in the coming years. The city will purchase 40 new trams, which will partly replace trams from the 1970s. The passenger capacity will increase by 15%.

The metro network will be expanded westward to Espoo, the second largest city of Finland. The extended metro line will comprise some 14 kilometres of tracks and seven stations, for which 48 metro cars will be needed. The capacity of the underground service in terms of passenger seats will increase by some 40%. The new cars will be fully automated.

The City of Helsinki seeks to ensure a high quality of service in its public transport and aims at strengthening the status of public transport by emphasising investments in rail transport. Rail transport is fast, convenient and, compared to cars, is an environment-friendly way of travelling.

The added value of NIB’s loan to the City of Helsinki is its very long-term financing of 30 years. It allows the city to develop its rail transport in the long run, as well as keep the public transport tariffs at a moderate level. The long maturity of the loan is a reflection of the expected life time of the new vehicles, which is 40 years.

“This loan demonstrates NIB’s added value for cities and municipalities, which in the current economic situation may find it challenging to obtain long-term funding. Moreover, it is a good opportunity for the Bank to enhance environment-friendly means of transport,” says Johnny Åkerholm, President and CEO of NIB.

The value of the city’s investment programme for rail transportation amounts to EUR 143 million. The trams and metro cars are expected to be taken into use in 2013 to 2015.

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.

For further information, please contact

NIB

Mr Lars Selenius, Senior Director, Lending, at +358 10 618 0502,

Mr Kim Krokfors, Senior Manager, Lending, at +358 10 618 0517,

City of Helsinki

Mr Matti Lahdenranta, Managing Director, Helsinki City Transport at +358 9 310 35091

Ms Eija Venetkoski-Kukka, Senior Manager, Finance, Economic and Planning Centre, at +358 9 310 36329