NIB signs sustainability-linked loan with Borregaard
The Nordic Investment Bank (NIB) signs a ten-year sustainability-linked loan agreement with Borregaard ASA to create financial incentives for the clients in achieving agreed and most relevant climate, environmental and social targets.
The USD 50 million loan (EUR 45.48 million) will contribute to financing Borregaard’s investments to reduce CO2 emissions and water effluents.
NIB and Borregaard have agreed on three key performance indicators (KPIs) to be achieved. The KPIs are closely linked to Borregaard’s sustainability strategy.
The margin under the loan agreement can be adjusted based on Borregaard’s progress on: (i) the Group’s 2030 target of reducing greenhouse gas emissions (Scope 1 and 2) as approved by the Science Based Target initiative, (ii) reduce emissions of organic compounds to the Glomma River to targeted levels and (iii) reduction of the Group’s total recordable injuries.
The Group will report on the three selected KPIs annually.
“NIB’s sustainability-linked lending has the potential of lowering our client’s cost of borrowing after achieving certain agreed targets. NIB and Borregaard have today agreed on ambitious targets that will have direct and positive impact on people, the environment, and the climate for the future,” says André Küüsvek, NIB President and CEO.
Per Bjarne Lyngstad, CFO of Borregaard says: “Borregaard’ s sustainable products and solutions can play an important role in addressing the world’s greatest sustainable development challenges; population growth and climate change. We plan to implement a number of climate measures in the following years to further improve the positive environmental impact our products have on our surroundings. NIB's sustainability-linked loan is an important contribution to the financing of these climate measures.”
This is the second loan agreement between NIB and Borregaard. The first was signed in 2014 and is related to the construction of a biological purification plant and R&D investments in alternatives to oil-based products.
Borregaard operates one of the world’s most advanced biorefineries. The Group provides sustainable products and solutions based on renewable raw materials and unique competence. In addition to its biorefinery in Sarpsborg, Borregaard has five production sites outside Norway producing lignin-based products. Borregaard has close to 1,100 full-time equivalent employees in manufacturing operations and sales offices in 13 countries in Europe, Asia, and the Americas. Borregaard ASA is listed on the Oslo Stock Exchange.
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 in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.
For further information, please contact
Sari Cabell, Senior Client Executive, Banker, Industry, Materials & Real estate, at +358 10 618 0510, sari.cabell@nib.int
Arild Moen, Communications Manager, at +358 10 618 0496, arild.moen@nib.int
Tags: