Investment reports

Nordic Investment Bank Reports “Significant Increase” in Funding Demand / Article

The NIB granted a total of EUR 2,203 million in new loans and disbursed EUR 2,142 million, compared to EUR 664 million and EUR 1,266 million respectively during the same period in 2021.

The new loans were spread across different sectors and countries and included sustainability-related loans and NIB’s first purchase of a minimum requirement for its own funds and eligible liabilities (MREL) eligible bond issued. by a financial institution.

“In these times, the need for the Nordic and Baltic region to accelerate the green transition and become independent from Russian oil and gas has become even more urgent. The NIB has already financed many renewable energy and transmission projects in member countries, which is central to the Bank’s mandate. We continue to provide our support to realize these goals and transform hard-to-reduce business sectors that also need to go green,” said André Küüsvek, President and CEO of NIB.

To meet the demand for funding, the NIB completed a record amount of funding transactions and raised €5.5 billion in new funding in the first half of 2022. Among other transactions, the Bank issued its first environmental bond NIB (NEB) denominated in Danish krone (DKK). The eight-year DKK 2 billion bond was raised by domestic ESG-focused investors. Since 2011, the Bank has issued a total of EUR 6.2 billion of environmental bonds under its NEB framework.

“NIB’s core business revenue saw strong growth in the first half of 2022 and net interest income ended at 104 million euros, which is an increase compared to the same period of the year. The loan portfolio also remains strong and there was a reversal of €8 million in loan loss provisions in the first six months of 2022,” says Kim Skov Jensen, Vice President and Chief Financial Officer of BIN.

However, the net profit for the period fell sharply and amounted to 39 million euros, compared to 82 million euros in 2021.

“The decline in net income is primarily due to unrealized fair value losses on financial instruments used for hedging purposes and, as the Bank intends to hold these hedges to maturity, these losses will not be realized. not,” the bank said.

The NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects inside and outside member countries. The interim financial report is available on the NIB website

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