NORDIC INVESTMENT BANK
NIB – the International
Financial Institution of the
Nordic and Baltic countries Possibilities of financing in Russia through Nordic Investment Bank
22 FEBRUARY 2013
NORDIC INVESTMENT BANK
Basic information
• Founded by the Nordic countries in
1975 (active since 1976)
• The Baltic countries joined in 2005
• Headquarters in Helsinki
• Lending in both member countries
and non-member countries
• Funds acquired on the
international capital markets
• AAA/Aaa credit rating
22 FEBRUARY 2013
NIB Headquarters in Helsinki, Finland. In 2009, NIB Headquarters joined
the WWF Green Office network.
NORDIC INVESTMENT BANK
Ownership structure The Bank's member countries have subscribed to its authorised capital
in proportion to their gross national income.
22 FEBRUARY 2013
Sweden 34.6%
Norway 21.5%
Denmark 21.1%
Finland 17.7%
Lithuania 2.0%
Latvia 1.3%
Iceland 0.9%
Estonia 0.9%
Authorised capital
to EUR 6,142m as
of 16 February 2011
NIB's Board of
Governors has decided
to increase the Bank's
authorised capital by
EUR 2 billion. The
capital increase has
been allocated to the
unpaid portion.
NORDIC INVESTMENT BANK
Mission and mandate
• NIB promotes sustainable
growth of its member countries
by providing long-term
complementary financing to
− projects that strengthen
competitiveness
− projects that enhance the
environment
22 FEBRUARY 2013
NORDIC INVESTMENT BANK
Mission and mandate: Focus sectors
• NIB puts particular emphasis on
projects involving investments in
the following sectors
− environment
− energy
− infrastructure
− innovation
• NIB finances
− larger investments by the corporate
sector
or public sector
− smaller projects through financial
intermediaries
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
80 %
90 %
100 %
Focus sector loans agreed, as a share (%) of total loans
Environment
Energy
Transport, logistics andcommunication
Innovation
Other sectors
22 FEBRUARY 2013
NORDIC INVESTMENT BANK
Strengthening competitiveness
22 FEBRUARY 2013
• Sustainability increases the level of
wealth and prosperity
• All projects considered for financing
undergo a competitive assessment of
• direct effects - upgrading or expanding a company's capital base,
for example by installing or replacing production
equipment;
• wider direct effects - improvements in infrastructure, for example by
construction of new highways, railroads and ports;
• indirect effects - demonstration effects, for example by applying
global best practice technologies Metro line in Helsinki.
Photo: City of Helsinki (Finland)
NORDIC INVESTMENT BANK
Regional focus NIB actively participates in international and
regional cooperation
22 FEBRUARY 2013
• EU Strategy for the Baltic Sea Region
• Northern Dimension Environmental
Partnership (NDEP)
• Northern Dimension Partnership on
Transport and Logistics
• Eastern Europe Energy Efficiency
and Environment Program
• Several trust funds for supporting
project development and making projects bankable
NORDIC INVESTMENT BANK
Focus sector: Environment
• Economic growth and a healthy
environment go hand in hand
• NIB has one of the most explicit
environmental mandates
among the large IFIs
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
2006 2007 2008 2009 2010 31Aug2011
Environmental loans outstanding as a share of total loans,
EUR million
Other loans Environmental loans
22 FEBRUARY 2013
NORDIC INVESTMENT BANK NORDIC INVESTMENT BANK
Long-term lending
instruments
22 FEBRUARY 2013
• Corporate loans, 5–15 years
• Financing via financial intermediaries,
5–12 years
• Sovereign loans to states or against state
guarantee, 15–25 years
• Subsovereign loans directly to municipalities,
10–20 years
• PPP financing, 5–15 years
NORDIC INVESTMENT BANK
Financial performance
22 FEBRUARY 2013
** Core earnings consist of the profit before adjustments to hedge
accounting, realised and unrealised gains and losses of the trading
portfolio and credit losses and reversals of these.
EUR million
Jan-
Aug
2011
Jan-
Aug
2010
2010
Net interest income 153 157 234
Core earnings** 136 149 217
Profit 124 131 211
Loans agreed 1,438 1,117 1,763
Loans disbursed 973 618 1,274
Loans outstanding 13,623 14,146 13,771
New debt issues 2,055 3,127 4,120
Total assets 22,865 26,582 24,898
Net operational
liquidity
3,052 4,960 4,213
Total equity 2,386 2,181 2,262
0
50
100
150
200
250
2006 2007 2008 2009 2010
Core earnings** and Net interest income in EUR million
Core earnings Net interest income
20 23 22
25 23
2007 2008 2009 2010 31 Aug2011
Total assets, in EUR billion
NORDIC INVESTMENT BANK NORDIC INVESTMENT BANK
Recent activity
Highlights January-August 2011
22 FEBRUARY 2013
• Authorised capital increased by
EUR 2 billion as of 16 Feb 2011
• Rebuilding loan inventory for
strong-mandate projects
• Profit for the period amounts to
EUR 124 million
• Loan disbursements to projects in
the focus sectors accounts
for about 80%
NORDIC INVESTMENT BANK
Loans outstanding
FEB-13
2006 2007 2008 2009 201031 Aug2011
Loans in non-member countries 2 328 2 417 2 921 2 874 2 761 2 679
Loans in member countries 9 231 9 898 10 159 10 901 11 019 10 952
Total 11 559 12 316 13 080 13 775 13 780 13 631
79% 83% 81% 80% 80% 80%
21% 17% 19% 20% 20% 20%
11 559
12 316
13 080
13 775 13 780 13 631
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Loans in non-member countries
Loans in membercountries
Total
12
NORDIC INVESTMENT BANK
Helsinki City Transport,
Finland
Elkem Solar AS (subsidiary
of Orkla AS), Norway
Railway company VAS
Latvijas Dzelzcels , Latvia
Svartsengi geothermal
power plant, Iceland.
City of Vilnius, Lithuania DONG A/S, Denmark
NIB in the member countries
13
FEB-13
Boliden, Sweden
Estlink, Estonia
NORDIC INVESTMENT BANK NORDIC INVESTMENT BANK
Non-member
country lending
22 FEBRUARY 2013
• Lending in a number of non-
member countries with high
potential in terms of project
participant interest and
mandate fulfilment
• Priority area: the Baltic Sea
region, including Poland,
Russia, Ukraine and Belarus
• Major emerging economies:
Brazil, China, India, South
Africa, Vietnam
NORDIC INVESTMENT BANK
NIB in non-member countries
22 FEBRUARY 2013
Modern transport
infrastructure in Poland
Upgrading telecom
infrastructure in Brazil
Wastewater treatment in
Northwest Russia
Renewable energy in India
Transfer of environment-
friendly technologies to
China
NORDIC INVESTMENT BANK
Clean drinking water and modern
wastewater treatment
• AS Tallinna Vesi, Estonia (2009)
• EUR 20 million, 10 years
• To improve the access of Tallinn's inhabitants to clean drinking water
and modern wastewater disposal services
• 3,500 households that are currently using septic tanks will be
connected to the Tallinna Vesi network.
• Decreases the risk of nutrients and other pollutants flowing into
surrounding water sources
Maintenance and extension of the water supply and sewage networks in
Tallinn.
22 FEBRUARY 2013
NORDIC INVESTMENT BANK
Cleaning the Baltic Sea
• Vodokanal St. Petersburg, Russia (2005)
• EUR 45 million
• NIB tailor-made the project's financial structure and acted as lead
bank.
• Implemented under the umbrella of the Northern Dimension
Environmental Partnership.
Southwest Wastewater Treatment Plant in St. Petersburg
22 FEBRUARY 2013
NORDIC INVESTMENT BANK
Cleaning the Baltic Sea
• Vodokanal St. Petersburg, Russia (2009)
• EUR 25 million
• The city to treat up to 95% of its wastewater by 2012.
• Discharge of untreated wastewater in the Gulf of Finland substantially
reduced.
• Implemented under the umbrella of the Northern Dimension
Environmental Partnership
Construction of a 12 km tunnel collector for closing direct discharges of
untreated wastewater along the river Neva in St. Petersburg
22 FEBRUARY 2013
NORDIC INVESTMENT BANK
Northern Capital Gateway
• Northern Capital Gateway LLC, Russia (2010)
• EUR 50 million, 15 years
• By reducing transport costs, the project may contribute to raising the
accessibility of the Baltic Sea region and to enlarging the effective
Nordic-Baltic market. This should improve the conditions for trade
and increase competition in the region.
Financing the reconstruction and expansion of Pulkovo airport, St
Petersburg
22 FEBRUARY 2013
NORDIC INVESTMENT BANK
NIB in Russia
22 FEBRUARY 2013
• NIB has opepated in Russia since
1987
• Primarily in Russia's Northwest region
• Exposure in Russia totals appr.
EUR 400 million
• Of those, 65% are environmental
projects in Northwest Russia:
- St Petersburg and Leningrad Oblast
- Kaliningrad
- Novgorod
- Karelia
Southwest Wastewater Treatment Plant in
St Petersburg. Photo: YIT
NORDIC INVESTMENT BANK
Cooperation with Vodokanal St Petersburg
22 FEBRUARY 2013
• NIB has cooperated with Vodokanal St Petersburgs for more than 10 years under the umbrella of the Northern Dimension Environmental Partneship
• Southwest Wastewater Treatment Plant in St Petersburg
- Launched in 2005 - Discharge of untreated wastewater decreased by 10% - NIB loan EUR 45 million - NIB lead bank arranging international structure financing
• Incineration plant for wastewater sludge
- Launched in 2007 - NIB loan EUR 13 million
• Underground sewage collector and pump station to cut down direct discharge of untreated wastewater from St Petersburg:
- 12-kilometre tunnel 80 metres under the surface - NIB loan EUR 25 million
At the inauguration of the Southwest
Wastewater Treatment Plant in St
Petersburg
NORDIC INVESTMENT BANK
Expansion of St Petersburg airport
22 FEBRUARY 2013
• NIB loan to the consortium
Northern Capital Gateway
(2010)
• EUR 50 million
• Construction of a new
terminal for international
passengers and
reconstruction of the
domestic terminal of the
Pulkovo airport in St
Petersburg.
Pulkovo airport in St Petersburg
NORDIC INVESTMENT BANK
Recent loans in Russia
22 FEBRUARY 2013
• Gazprombank (2011). EUR 60 million. Loan programme for
energy efficiency projects.
• VTB (2011). EUR 100 million. Loan programme projects in energy,
transport and logistics in Northwest Russia.
• Vodokanal Velikiy Novgorod (2009). EUR 4 million. For
improvements in drinking water supply and the reconstruciton of
municipal sewer.
• MTS (2009). EUR 40 million. For telecommunications system
upgrade in Russia, Ukraine, Armenia and Turkmenistan.