Presentation Meeting 2 Ljungberg NiB

NIB – the InternationalFinancial Institution of theNordic and Baltic countriesPresentation for BSPC Green Growth and Energy EfficiencyMarch 2, 2012Senior Director Johan LjungbergNORDIC INVESTMENT BANK 02 MARCH 2012Basic information• Founded by the Nordic countries in1975 (active since 1976)• The Baltic countries joined in 2005• Headquarters in Helsinki• Lending in both member countriesand non-member countries• Funds acquired on theinternational capital markets• AAA/Aaa credit ratingIn 2009, NIB Headquarters joined NIB Headquarters in Helsinki, Finland.the WWF Green Office network.NORDIC INVESTMENT BANK 02 MARCH 2012Ownership structureThe Bank's member countries have subscribed to its authorised capitalin proportion to their gross national income.Authorised capitalto EUR 6,142m asof 16 February 2011Sweden 34.6%Norway 21.5%Denmark 21.1%NIB's Board ofFinland 17.7% Governors has decidedLithuania 2.0% to increase the Bank'sauthorised capital byLatvia 1.3%EUR 2 billion. TheIceland 0.9%capital increase hasEstonia 0.9%been allocated to theunpaid portion.NORDIC INVESTMENT BANK 02 MARCH 2012Mission and mandate• NIB promotes sustainablegrowth of its member countriesby providing long-termcomplementary financing to− projects that strengthencompetitiveness− projects that enhance theenvironmentNORDIC INVESTMENT BANK 02 MARCH 2012Strengthening competitiveness• Sustainability increases the level ofwealth and prosperity• All projects considered for financingundergo a competitive assessment of• direct effects- upgrading or expanding a company's capital base,for example by installing or replacing productionequipment;• wider direct effects- improvements in infrastructure, for example byconstruction of new highways, railroads and ports;• indirect effects- demonstration effects, for example by applyingglobal best practice technologiesMetro line in Helsinki.Photo: City of Helsinki (Finland)NORDIC INVESTMENT BANK 02 MARCH 2012Enhancing the environment• NIB defines loans to projects with significantdirect or indirect positive environmental impactsas environmental loans• Two environmental lending facilities− BASE framework (The Baltic Sea EnvironmentFinancing Facility)EUR 500m− CLEERE framework (Climate Change, EnergyEfficiency and Renewable Energy Facility)EUR 3bnRestoring the ecological health of the BalticSea. Southwest Wastewater Treatment Plantin St. Petersburg, Russia.NORDIC INVESTMENT BANK 02 MARCH 2012Focus sector: Energy• The energy sector's main focus is onenergy efficiency, integrated energynetworks and sustainable andsufficient generation capacity.• In April 2010, NIB adopted anEnergy Strategy to increaseproactivity and to ensure mandatecompliance. NIB-financed projectsare also in line with the European*objectives in this sector.Project examples: Transmission lines, improveddistrict heating, renewable energy projects, energyPhoto: Eidsiva Energi AS (Norway)efficiency projects in buildings*EU and EEANORDIC INVESTMENT BANK 02 MARCH 2012Focus sector: EnvironmentEnvironmental loans outstanding• Economic growth and a healthy as a share of total loans,EUR millionenvironment go hand in hand16 000• NIB has one of the most explicit 14 00012 000environmental mandates10 000among the large IFIs8 0006 0004 0002 00002006 2007 2008 2009 2010 31Aug2011Other loans Environmental loansNORDIC INVESTMENT BANK 02 MARCH 2012Focus sector: Transport, logisticsand communications• Effective transport, logistics andcommunications are essentialfor ensuring competitiveness• In early 2011, NIB adopted alending Strategy for transport,logistics and communications• Many projects also havesignificant environmentalbenefitsProject examples: Road constructions,railways, airports, broadband and mobilephone networks Photo: SJ AB (Sweden)NORDIC INVESTMENT BANK 02 MARCH 2012Focus sector: Innovation• Lending to activities related toinnovation processes• R & D projects• Lending via financialintermediariesPhoto: Novozymes (Denmark)NORDIC INVESTMENT BANK 02 MARCH 2012NIB in the member countriesHelsinki City Transport,FinlandSvartsengi geothermalpower plant, Iceland.Elkem Solar AS (subsidiaryof Orkla AS), NorwayEstlink, EstoniaBoliden, SwedenRailway company VASDONG A/S, Denmark City of Vilnius, Lithuania Latvijas Dzelzcels , LatviaNORDIC INVESTMENT BANK MAR-1211Non-membercountry lending• Lending in a number of non-member countries with highpotential in terms of projectparticipant interest andmandate fulfilment• Priority area: the Baltic Searegion, including Poland,Russia, Ukraine and Belarus• Major emerging economies:Brazil, China, India, SouthAfrica, VietnamNORDIC INVESTMENT BANK 02 MARCH 2012