17 Sep 2020
EUR 24.77 million
Financial institutions and SMEs
NIB has provided a 14-year-maturity loan totalling EUR 91 million for financing of the E18 Koskenkylä-Kotka motorway in Finland. The project comprises the construction and maintenance of 53 kilometres of motorway, of which 36 kilometres will be newly built and 17 kilometres will be two-lane highway converted into motorway, including the necessary ramps and intersections.
The road to be constructed is strategically important as it is a part of the E18 corridor connecting Helsinki to continental Europe and Russia. The E18 international corridor is prioritised by the EU and stretches in Finland from Turku and Naantali via the Helsinki Metropolitan Area to Vaalimaa at the Russian border. The project will also enhance the connection between urban centres along the southern coast of Finland.
"The construction of the Koskenkylä-Kotka motorway is strategically important for the Finnish economy and the competitiveness of the cities in southern Finland. The project also aims to improve traffic flow, shorten travel times and increase road safety," says Johnny Åkerholm, President and CEO of Nordic Investment Bank.
The borrower, Tieyhtiö Valtatie 7 Oy, is a consortium established especially for this project. It consists of YIT, Destia, Meridiam Infrastructure and Ilmarinen Mutual Pension Insurance Company. The consortium was chosen by the Finnish Transport Agency as the preferred bidder after the conclusion of a tendering process for the project.
The Nordic Investment Bank (NIB) 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
Kim Krokfors, Senior Manager, Origination, at +358 10 618 0517,
Kyra Koponen, Communications Officer, at +358 10 618 0297,