Capital structure

NIB’s capital base consists of authorised capital subscribed by the member countries and reserves accumulated through internal profit generation.

The Bank’s authorised capital was EUR 6,141.9 million as of 31 December 2015. The paid-in capital at the end of the year amounted to EUR 418.6 million. The remainder of NIB’s authorised capital is subject to call if the Bank’s Board of Directors deems it necessary for the fulfilment of the Bank’s debt obligations.

The Bank’s equity consists of the paid-in portion of the authorised capital and accumulated reserves. As of 31 December 2015 the Bank’s equity amounted to EUR 3,146.5 million. Further information on the composition of the Bank’s equity is provided in the Statement of financial position and Changes in equity.

NIB’s member countries have subscribed to the Bank’s authorised capital and guaranteed the special loan facilities mentioned below in proportion to their gross national incomes. The countries’ share of the authorised capital is shown on the map of member countries.

member_countries

 

The Bank’s ordinary lending ceiling corresponds to 250% of the authorised capital and accumulated general reserves. After the appropriation of profits from the financial year 2015, in accordance with the proposal made by the Board of Directors, the ordinary lending ceiling amounts to EUR 20,922 million.

In addition to ordinary lending, NIB has two special lending facilities. The Project Investment Loan facility (PIL) amounts to EUR 4,000 million. The member countries guarantee 90% of each loan under the PIL facility up to a total amount of EUR 1,800 million. The Bank, however, will assume 100% of any losses incurred under an individual PIL loan, up to the amount available at any given time in the Special Credit Risk Fund for PIL. Only thereafter would the Bank be able to call in the member countries’ guarantees.

The second special facility, the Environmental Investment Loan facility (MIL) has a maximum ceiling of EUR 300 million. The Bank’s member countries guarantee 100% of loans outstanding under the MIL facility. Following a call on the guarantees in 2014 the member countries’ total guarantee liabilities as of year-end 2015 amount to EUR 281 million.

See Note 8 in the Financial Report for a more detailed presentation of the loan facilities, the guarantee structure and distribution.

In view of the Bank’s strong capital base, the quality of its assets and its status as an international financial institution, the leading international rating agencies, Standard & Poor’s and Moody’s, have accorded NIB the highest possible issuer credit rating, AAA/Aaa, for long-term obligations and A-1+/P-1, respectively, for short-term obligations. NIB obtained the highest possible credit rating in 1982. Since then, the Bank has maintained this credit rating without interruption.

Capital base

NIB_2015graphs_pie_Capital base

 

 

Capital ratios

NIB_2015graphs_line_Capital ratios