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NIB Environmental Bonds
Not for distribution in the USA
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Environmental Bonds -
FOR A SUSTAINABLE
Future Not for distribution in the USA
Environment part of NIB's mission and mandate
Supporting growing SRI awareness Investor diversification Framework with second opinion from
CICERO, compliant with the Green Bond Principles
Projects located in member and EU countries
Transparent reporting on www.nib.int NIB member of the GBP Executive
Committee
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NIB Environmental Bond Framework
Issued under existing Issuance Program
Governed by the same legal framework as regular bonds
Direct obligations of NIB, no project risk
Investing with positive environmental impact
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NIB Environmental Bonds SIMPLE SET UP
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Selection process
Selection criteria
Separation of funds
Reporting
Not for distribution in the USA
NIB Environmental Bonds PROCESS OVERVIEW
The Sustainability & Mandate Unit Assessment of mandate fulfilment of all projects Identifies and preselect the projects by eligibility criteria
during the assessment Proposes projects for NEB
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Process Overview SELECTION PROCESS
Credit Committee Decides on eligibility for NEB
Project located in NIB member or EU country
No potentially threatening risk elements
High likelihood of achieving the targeted environmental benefits
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Process Overview SELECTION CRITERIA
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Process Overview MANDATE RATING
Assessment of the potential environmental impact (negative – neutral – positive)
Positive impact is evaluated versus peer group, best available improvement and absolute impact (excellent – good – moderate – marginal)
NEB eligibility: excellent and good positive potential impact
Realisation risk: probability that potential impact
does not materialize (low – moderate- high – very high)
Factors: Technical, ecological, social, governance, legal etc.
Impact Risks
Process Overview SUSTAINABILITY REVIEW
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Why? Identify and assess reputational and credit risks
How? Define project and collect information: Site Visit, Stake holder and project people interviews, quality assurance
Benchmarking, Compliance with EU legislation, BAT, IFC Performance Standards, Environmental Impact Assessment, Reporting system
Reporting and disclosure
What is excluded (Examples)? New base load power plants with an installed capacity above 50 MW (electricity + thermal heat) mainly fuelled with coal or fuels with a similar fossil carbon dioxide intensity. Exclusion of coal, oil, peat, bio-fuels based on raw material feed from food, new medium or large scale hydropower
Production or trade in radioactive products
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Energy efficiency Reduction of energy use by min. 30%
Renewable energy Wind, solar, tidal and wave, geothermal, biofules and -gas, hydro
Public Transport Improved logistics for rail and waterways (mainly based on electricity and biofuel)
Waste management
Waste water treatment
Green Buildings Commercial and Multi-family buildings certified LEED Platinum or BREEAM Excellent and 25% improvement in energy efficiency (EU green building requirements)
Transmission Connect renewable energy to the grid
Process Overview SELECTION CRITERIA - CATEGORIES
Treasury
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Proceeds Disburse-ments
Not for distribution in the USA
Process Overview SEPARATION OF FUNDS
Short Term Funding
Green Fund Pool
NEB eligible loans
Short Term Money Market
Placement
NEB Bond Issue
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Process Overview REPORTING
All projects financed: project description, mandate fulfilment and sustainability report summary
NEB financed amount and share of loan, disbursement date and maturity
Country and category of project
Total CO2 equivalent per annum impact on a portfolio basis
NIB participates in IFI's working group on green bond reporting
WE PROVIDE TRANSPARENT REPORTING: NIB.INT
NIB ENVIRONMENTAL BONDS Issued amount: EUR 2.1 billion equivalent Outstanding amount: EUR 2.0 billion equivalent
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Outstanding NEB issues Issue Year Currency Amount in mn. Maturity EUR mn. equivalent
2016 SEK 1,500 7Y 157
2016 EUR 500 8Y 500
2016 SEK 1,000 5Y 107
2015 EUR 500 7Y 500
2015 SEK 1,000 5Y 107
2014 USD 500 7Y 397
2014 EUR 40 5Y 40
2013 BRL 344 5Y 105
2013 SEK 500 5Y 58
2012 SEK 500 20Y 59
2011 ZAR 1,006 4Y 92
Sweden 48 %
Finland 26 %
Norway 18 %
Denmark 6 %
Poland 0 %
Lithuania 2 %
Projects per Country
NIB ENVIRONMENTAL BONDS Projects financed
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NEB issues have financed 42 projects for a total of EUR 2.3 billion
Energy Efficiency
7%
Renewable Energy
35%
Waste water treatment
17%
Waste management
13%
Public Transport
14% Green Buildings
14%
Projects by Type
CO2EQ 15
650,000 t all projects financed by NEB
* p.a. reduction calculated on the basis of the participation of NIB in per cent in a project The number is calculated in accordance with new harmonised methodology implemented by IFI's in Jan 2016
Process Overview REPORTING: CO2 REDUCTION P.A.*
Helgeland Kraft AS
Construction of five hydro power plants in Norway to increase security of supply and new generation capacity by 125 GWh p.a. The plants were designed to adapt well to the surrounding nature.
Maturity: 15 years
EUR 24mn
Not for distribution in the USA
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Käppalaförbundet A new digester treatment plant in northern Stockholm, Sweden. The new digester will increase the capacity to produce biogas with 50%. The extra capacity will be used to treat external organic waste, the external material will generate 20,800 MWh/a.
Maturity: 25 years
EUR 10mn
Not for distribution in the USA
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Vasakronan AB
Construction of two new office buildings targeting LEED Platinum certification located in Frösunda and Uppsala in Sweden.
Maturity: 10 years
EUR 48mn
Not for distribution in the USA
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Projects financed with NEB proceeds
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Customer Country Description City of Helsinki Transport
Finland 20Y EUR 60mn for financing the purchase of 40 energy-efficient low-floor Artic trams for the city.
City of Oslo Norway 25Y NOK 1500mn for expanding the Bekkelaget wastewater treatment plant in Oslo
Ekerövatten AB
Sweden
10Y SEK 100mn (85% NEB eligible) for financing of investments in the water and wastewater treatment in southern Stockholm
City of Bergen Norway 20Y NOK 1000mn for upgrading the wastewater treatment system in Bergen
City of Stockholm Sweden 10Y SEK 2000mn for expanding the Henriksdal wastewater treatment plant and constructing a sewer tunnel under Stockholm
Vasakronan Sweden 10Y SEK 445mn for financing the Frösunda and Uppsala LEED Platinum construction projects
Ängelholms kommun Sweden 15Y SEK 100mn for financing of investments to improve wastewater treatment in Ängelholm
Helgeland Kraft AS Norway 15Y NOK 470mn (89% NEB eligible) for financing of five new hydropower plants
Projects financed with NEB proceeds
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Customer Country Description Käppalaförbundet Sweden 25Y SEK 151mn (60% NEB eligible) for financing
investments in a new digester treatment plant in Northern Stockholm
City of Mikkeli Finland 25Y EUR 5mn for financing of a new wastewater treatment plant in City of Mikkeli
Stockholm County Council
Sweden 10Y SEK 1000mn for acquisition of 48 new metro trains and a new traffic operation system for Stockholm's metro system
Republic of Lithuania Lithuania 20Y EUR 30mn for renovation of public buildings and apartments, reducing the heat use (Public Sector Energy Efficiency Project and Housing Renovation Program)
Elkem AS Norway 13Y EUR 40 mn (47% NEB eligible) for financing the rebuilding of three of its electric arc furnaces
Fastighets AB ML 4 Sweden 24Y SEK 1.5bn for financing the construction of the MAZ IV synchrotron radiation research laboratory as part of Lund University in Sweden (BREEM Excellent)
SJ AB Sweden 10Y SEK 770mn for modernisation of X2000 trains in Sweden
Projects financed with NEB proceeds
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Customer Country Description City of Vantaa Finland 20Y EUR 52mn construction of commuter train track
Akershus Energi Norway 10Y NOK 100mn, for the replacement of two turbines increasing the annual production of electricity by 12% in an already regulated waterway (additional drawing under existing project)
Vantaan Energia Finland 19Y EUR 64mn, construction of the first waste to energy plant in the Helsinki Metropolitan Area
Lyse Norway 15Y EUR 113mn, replacement of existing hydro power plant
Energa Poland 11Y PLN 67.5mn financing a new wind farm in north western Poland
For more projects please visit: http://www.nib.int/capital_markets/environmental_bonds/neb_transactions_and_projects
Not for distribution in the USA
Framework Second opinion All policies All issued NIB Environmental
Bonds and financed projects CO2eq p.a. impact on portfolio
basis
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Process Overview REPORTING
FUNDING & INVESTOR RELATIONS
Jens Hellerup Senior Director Head of Funding & Investor Relations Tel +358 9 61811401 [email protected]
Alexander Ruf Senior Funding Manager Funding & Investor Relations Tel +358 9 61811402 [email protected]
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Angela Brusas Senior Funding Manager Funding & Investor Relations Tel +358 9 61811403 [email protected]
Nordic Investment Bank www.nib.int/capital_markets/environmental_bond
Not for distribution in the USA
@nib