- All-time high reached for loans disbursed (EUR 3.4 billion), and loans agreed (EUR 4.4 billion)
- First loans under the Arctic Facility and to mid-cap borrowers
- NIB Lending launches programme to buy green bonds
In 2016, NIB’s Board of Directors approved a total of EUR 4.8 billion in new loans. NIB agreed on 58 loans and invested in eight green bonds. Aggregated, this amounts to EUR 4.4 billion, of which EUR 3.4 billion was disbursed.
These volume figures represent all-time highs. More than two thirds of the new loans were made to new borrowers, supporting NIB’s aim to broaden its client base.
The purpose of NIB’s lending is to fulfil the Bank’s mandate of improving the competitiveness and environment of the Nordic and Baltic countries. NIB assesses all potential loans internally according to their mandate contribution. Only projects that contribute sufficiently to NIB’s mandate fulfilment qualify for loan approval.
The high share of lending with a “good” or “excellent” mandate rating was sustained in 2016, accounting for 96% of all loans agreed.
The total amount of loans outstanding increased to EUR 16.6 billion by 31 December 2016, from EUR 15.6 billion a year earlier.
No guarantees were outstanding at the end of the year.
In 2016, NIB Lending launched a new product for investing in green bonds issued by companies or municipalities in the member countries. The aim is to support the development of the green bond market, finance environmental investments and promote good standards. A facility of EUR 500 million was approved for this purpose.
In 2016, NIB invested in eight bond transactions and held EUR 143 million in green bonds at year-end. NIB discloses its green bond purchases on its website.
During 2016, NIB began implementing the Bank’s updated strategy. While the established business model of NIB still remains the core of its lending activities, new activities were initiated alongside these, targeting arctic loans, midcap borrowers and risk-sharing with financial institutions.
In 2016, NIB also started to perform ex-post mandate assessments of its financed projects.