NIB A MAJOR ENVIRONMENTAL FINANCIER



 The  Bank  shows  good results for the first eight months of the year,

notwithstanding  the general slackness of economic activity in the Euro

region.  Period  profits rose by 3.6% to EUR 100 million (corresponding

period  in  2002:  EUR  97  million). Total assets amounted to EUR 17.3

billion  compared with EUR 15.9 billion at year-end 2002. Net liquidity

rose  to  EUR 3,802 million compared with EUR 2,947 million at year-end

2002.  NIB distributed EUR 40.3 million in dividends to its owners, the

Nordic countries, from profits for the year 2002.



 New  lending  for  the  period  totalled  EUR 910 million (937). Loans

outstanding  amounted to EUR 10,323 million at 31 August 2003, compared

with  EUR  10,110 million at year-end 2002. New borrowing for the first

eight  months  of  the year equalled EUR 2,759 million as compared with

EUR  1,679  million  at  the  corresponding  time last year. During the

spring  the  Bank  launched  its  second USD 1 billion global benchmark

issue  in  the  form  of  five-year  bonds. These were well received by

investors and were sold worldwide.



 The  Bank  has  continued  to  maintain  the  quality  of  its lending

portfolio  and  financial  counterparties  at a high, stable level. The

favourable  development  of  the Bank's profits is expected to continue

during  the  remainder of the year. BALTIC MEMBERSHIP At the meeting of

Nordic Prime Ministers in June, the five heads of government reached an

agreement  of  principle  in  favour  of  offering membership in NIB to

Estonia,  Latvia  and  Lithuania.  The  Prime  Ministers instructed the

Nordic  Ministers  of  Economy  to  prepare, in time for the meeting of

Prime Ministers in October, a proposal for conditions of affiliation.



 INFRASTRUCTURE AND INDUSTRY IN THE NORDIC COUNTRIES



NIB's  lending  activities  in  the  Nordic countries were dominated by

infrastructure and industrial investments. Lending to the manufacturing

and  food  industries  was largest, with several loans to environmental

investments  or  cross-border  company  acquisitions.  One  quarter  of

disbursements  went  to  the  energy  sector-to company acquisitions in

Sweden,  biofuelled  power  station  investments in Finland, wind power

investments   in   Denmark,   hydropower  investments  in  Norway,  and

distribution  network  enlargement  in  both  Denmark  and Iceland. The

proportion   of  environmentally  related  investments  in  the  Nordic

countries shows a clear increase, accounting for 25% of disbursements.



 INTERNATIONAL FOCUS ON ENERGY LOANS



International   lending  was  dominated  by  loans  for  infrastructure

investments,  above  all  in  energy, transport and telecommunications.

There  was  a  growth  of lending for projects in the environmental and

health  care  sectors.  At  present  NIB  has  loans  outstanding in 32

countries   outside   the   Nordic   area.  Lending  through  financial

intermediaries   accounts  for  a  growing  proportion  of  the  Bank's

international activities. The Bank further increased its involvement in

the Baltic countries and Poland, above all in the energy sector thereby

contributing   towards   safer   energy   supply  and  improved  energy

efficiency.  During  the period, e.g., a loan agreement was signed with

the state-owned Latvian power company.



 ENVIRONMENTAL FINANCING



Financing of environmental investments plays an important part in NIB's

lending.  During  the  period  under  review the Bank granted eight new

environmental  loans  totalling  EUR 135 million. Upwards of 18% of the

loans  disbursed  during  the  period  were  environmental  loans.  The

proportion  of  environmental  loans,  especially  in  the neighbouring

areas,  has  continued to increase during the year. The increase in the

Bank's  environmental lending facility for the neighbouring areas (MIL)

from EUR 100 million to EUR 300 million, which took effect on 1 January

2003,  has  increased  the  Bank's  possibilities  of  financing urgent

environmental  projects  in  the  neighbouring areas. The Bank plays an

active role in the Northern Dimension Environmental Partnership (NDEP),

a  partnership  aimed at coordinating and streamlining the financing of

environmental  projects  with  cross-border  effects  in  the  Northern

Dimension  area.  The NDEP has set up an investment programme of twelve

environmental projects to be prepared within the Partnership framework.

NIB  is  responsible  for  preparing and coordinating seven of them. In

addition, the NDEP has initially set up a EUR 500 million programme for

nuclear waste projects in the Kola Peninsula.



 WASTEWATER TREATMENT IN NORTHWEST RUSSIA



In  March  NIB signed a credit agreement with a Russian project company

for  completion  of  the Southwestern Wastewater Treatment Plant in St.

Petersburg.  Construction  work  on  the  plant  has  begun and will be

completed  within  three years. Disbursements for the project have also

been  inaugurated.  Since  2000  NIB  has  been  the  lead bank for the

financing operations of the banking consortium. This wastewater project

is  the  most  important environmental project in the Baltic region and

will  have  a  substantially beneficial ecological impact. The Bank has

established  a  lending  programme with a Russian intermediary bank for

financing  smaller  environmental  projects  in  northwest  Russia, the

intention  being  to  allocate  credits for water supply and wastewater

treatment,  among  other  purposes, in a number of small communities in

the Leningrad region.



 KEY FIGURES (in EUR million)



                                               1-8/2003        1-8/2002

1-12/2002



Net interest income                     102           100           150



Profit                                                              100

97            142



Loans     disbursed                                910              937

1,648



New loan agreements              1,029         1,020        1,807



New debt issues                       2,759         1,679         3,320



Profit / average equity (%)         9.5           9.9           9.5





                                        31  Aug 2003   31 Aug 2002   31

Dec 2002



Loans outstanding                    10,323         9,929        10,110



Total    assets                                  17,303          14,892

15,948



Net        liquidity                                              3,802

2,287         2,947



Number of employees                  147             141            144





 29  August 2003: EUR 1.00 = DKK 7.43 / ISK 88.01 / NOK 8.25 / SEK 9.23

/USD 1,09



 NIB  is  a multilateral financial institution owned by the five Nordic

countries.  The Bank finances investment projects of mutual interest to

the  borrower  and  the  Nordic countries. NIB has the highest possible

credit rating, AAA/aaa, with the leading rating institutions Standard &

Poor's and Moody's.



 For  further information, please call Mr Jón Sigurdsson, President and

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

+358 40 581 7208. <a href='http://www.nib.int' target='_blank'>http://www.nib.int</a>