nib the international financial institution of the nordic … · nordic investment bank nib – the...

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


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.


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.


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

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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

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Strengthening competitiveness

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• 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)


Regional focus NIB actively participates in international and

regional cooperation

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• 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


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

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NORDIC INVESTMENT BANK NORDIC INVESTMENT BANK

Long-term lending

instruments

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• 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


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


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%


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


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


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


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


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.

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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


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

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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


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


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


Expansion of St Petersburg airport

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• 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


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.

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