Energy and environment: This business area accounted for the largest share of new lending in 2016, with 35% of the agreed loans totalling EUR 1,534 million.
A substantial part of loans in this business area was earmarked for improved wastewater treatment. Other noteworthy projects financed included investments in electricity transmission, distribution networks and smart metering systems. In addition, the Bank extended financing for electricity and heat generation projects comprising hydropower, biomass and industrial energy plants.
Infrastructure, transportation and telecom: In 2016, 27% of all loans agreed were in this business area, totalling EUR 1,198 million.
This lending area covered a wide range of investments. In transportation, the Bank participated in financing urban transport projects and airport enlargements. Another major sector was educational infrastructure, with financing provided for the modernisation and enlargement of universities and schools. NIB also participated in financing the construction of the European Spallation Source in Sweden. Within urban infrastructure, the Bank financed improved water supply facilities.
Industries and services: Agreed loans in this business area amounted to EUR 912 million, equalling 21% of all loans agreed during 2016.
More than half of the new loans in this area were provided for financing industrial research and development programmes. In addition, the new lending comprised corporate investments in production facilities and acquisitions. Further, NIB financed real estate construction involving the highest level of environmental certification. 2016 also saw the first loan being made to a midcap company, as part of the Bank’s updated strategy.
Financial institutions and SMEs: The total amount of agreed loans in this business area was EUR 720 million, which is equivalent to 17% of all loans agreed.
NIB provided financing to banks and other financial institutions, which act as financial intermediaries on-lending the funds to their clients. This enabled NIB to reach out to smaller counterparts and projects that the Bank cannot finance directly. The majority of such loans targeted small and medium-sized companies and renewable energy projects. NIB also entered into a loan agreement with Finnvera to channel financing for investments in a Brazilian pulp and paper mill implemented with participation from NIB’s member countries.
The first loan involving risk-sharing with a financial intermediary institution, a new lending product developed as part of NIB’s updated strategy, was also made in 2016.