16.03.2005, NORDIC INVESTMENT BANK OBL. NIB07, RIG

Nordic Investment Bank                                        16.03.2005. 



NIB: Nordic Investment Bank results for 2004



The year 2004 was an eventful and positive year for the Nordic Investment Bank 

(NIB). The financial results for the year were the best in the Bank's history. 

New lending maintained a fairly strong level despite sluggish investment demand.



NIB's profit for 2004 amounted to EUR 172 million, compared with EUR 151 million 

in 2003, representing an increase of 13.9%. Net interest income rose to EUR 163 

million in 2004, up from EUR 155 million in 2003. At year-end, total assets amounted

to EUR 16.4 billion (2003: 16.7). Net liquidity amounted to EUR 2,876 million (2,744). 

The Board of Directors proposes that EUR 55 million (41.3) be paid as dividends to 

the Bank's owners 2004-the Nordic countries-for the financial year 2004.



Disbursements of new loans reached EUR 1,348 million (1,841) and new loan agreements 

amounted to EUR 1,657 million (1,859). Loans outstanding totalled EUR 10,279 million 

(10,522) at year-end. Adjusted for exchange rate changes the stock remained unchanged.



The volume of new borrowing amounted to EUR 1,808 million (3,258). Callable 

bonds from earlier issues that were not called, in the amount of EUR 676 million, 

can be added to the new borrowing. Thus total annual funding amounted to EUR 2,484 

million. Borrowing outstanding amounted to EUR 12,355 million (13,087) at the end 

of 2004. The Bank successfully launched its third global benchmark issue of 

USD 1 billion in the five-year segment.



The quality of the Bank's portfolios, taken as a whole, continues to be very high. 

During 2004, specific provisions for possible loan losses were recognised in the 

Profit and Loss Account with a sum of only EUR 0.7 million. Reversals of specific 

provisions recognised in previous years totalled EUR 4.5 million.



Three new member countries

Membership in NIB was broadened on 1 January 2005, when the three Baltic countries 

became full members of the Bank. On 11 February 2004, representatives of the Nordic 

and Baltic countries' governments signed the new Agreement on NIB. The Agreement 

was ratified by all eight countries during 2004. Accordingly, Estonia, Latvia 

and Lithuania became members of NIB on an equal footing with NIB's five founding 

members: Denmark, Finland, Iceland, Norway and Sweden. Membership of the Baltic 

countries in NIB represents an important milestone in the Bank's history.



Lending to manufacturing industry and infrastructure

NIB participated in the financing of 38 investment projects and loan programmes 

in the Nordic countries. Manufacturing industry accounted for one third and the 

energy sector for one fourth of the disbursements in the Nordic region during 

the year. The Bank made loan disbursements to energy investments in all five 

Nordic countries. Lending to the energy sector in Iceland was especially important, 

as NIB participated in financing of this country's major power plant projects, 

both in water and geothermal energy production.



At year-end 2004, the Bank had loans outstanding in 30 countries outside the 

Nordic area. During the year the Bank entered into 30 new international loan 

agreements. The international lending was mostly focused on financing of 

infrastructure investments, particularly within the sectors of energy, 

transportation and communications. Lending activities in the Baltic countries 

focused particularly on environmental and infrastructure projects.



NIB can provide loans and guarantees for projects outside the member countries 

under a special loan facility called the Project Investment Loan facility, PIL, 

with special guarantees from the Bank's owners. On 1 July 2004, the Bank's PIL 

facility was increased from EUR 3,300 million to EUR 4,000 million. The increase 

of the facility provides a greater scope for the Bank to grant loans to countries 

that are not members of NIB.



Environmental projects

Financing environmental investment is one of the cornerstones of NIB's lending 

operations. During the year, 26 new environmental loans for a total of EUR 300 

million were granted. Of the loans disbursed during the period, 17% were 

environmental loans.



NIB has undertaken an active role in the Northern Dimension Environmental 

Partnership (NDEP). In July 2004, NIB assumed the chairmanship of the Steering 

Group for the NDEP. NIB is responsible for preparing and coordinating seven of 

the NDEP's thirteen environmental projects. The Bank continued expanding its 

activities in Northwest Russia within the framework of the Partnership. Among 

these projects, NIB launched the disbursements of loans for environmental 

investments to industrial enterprises in the private sector in the area 

surrounding the Ladoga and Onega lakes. A number of loans were granted to 

projects within the pulp and paper industry in this area.



New President and CEO

In September, the Bank's Board of Directors appointed Johnny Åkerholm the Bank's 

new President and Chief Executive Officer. He takes up his position on 1 April 

2005. He succeeds Jón Sigurðsson, who has been NIB's President and CEO since 

April 1994.



NIB's Financial Statements for 2004 are published on 15 March 2005 on 

<a href='http://annual.nib.int' target='_blank'>http://annual.nib.int</a>



Key figures

(in EUR million)                                  2004    2003 

Net interest income                                163     155 

Profit                                             172     151 

Loans disbursed                                  1,348   1,841 

Loans agreed                                     1,657   1,859 

Loans outstanding                                10,27  10,522 

New debt issues                                  1,808   3,258 

Debts evidenced by certificates                 12,355  13,087 

Net liquidity                                    2,876   2,744 

Total assets                                    16,363  16,666 

Equity/assets ratio (%)                           10.9     9.9 

Profit/average equity (%)                         10.1     9.5 

Number of employees                                147     147 

        



NIB is a multilateral financial institution owned by eight member countries: 

Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The 

Bank finances private and public projects within 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 call Mr Jón Sigur&#240;sson, President and CEO, on 

+358 9 18 001, or Ms Jamima Löfström, Information Manager, on +358 9 1800 291 

or +358 40 581 7208.