Keeping NIB relevant: Good demand for long-term loans

The Nordic–Baltic investment climate is slightly improving and the Nordic Investment Bank sees good demand for its long-term loans, says Thomas Wrangdahl, First Vice-President and Head of Lending at NIB.

“For sure, there is a lot of liquidity and private and public companies have access to financing in a much more favourable way than before. This is good for the market and also for the Bank’s vision of a prosperous and sustainable Nordic–Baltic region”, Wrangdahl says in an interview with NIB Magazine.

How can NIB stay relevant in such a market situation?

“We are here to complement that development with long-term funding. It’s all about being present in the market, maintaining a dialogue with potential clients and trying to understand their needs. Through meetings we seek to help develop interesting opportunities that are in line with our mission to finance projects that improve competitiveness and the environment of the Nordic–Baltic countries.”

How is the Bank guided by its mandate?

“The competitiveness and environmental parts of NIB’s mandate are equally important. I like that. That is the way I see my role here at NIB, to push for those kinds of deals so that we can find interesting projects. And people also come to us with interesting ideas.”

“There is also a clear connection between the Bank’s loan projects that we want to be eligible for green bond funding and NIB’s issuance of Environmental Bonds. I think that is a very strong and promising connection very much in line with NIB’s mandate.”

Wrangdahl expects the Bank to achieve its goal of disbursing EUR 2 billion in loans in 2014. The aim is to disburse a similar amount in 2015, as well.

What can NIB offer in addition to long-term funding?

“We can still often go a bit longer in maturities than commercial banks and even bond markets, and that is where we should add value. In addition, NIB offers valuable diversification: it is important for our clients that they have many ways of getting funding.”

“Our sustainability also often functions as a stamp of approval. Getting a loan from NIB can sometimes be seen to help clients to get access to additional funding elsewhere. The Bank sometimes also has a role of actually providing knowledge, such as the many public–private partnerships we have been involved with in the Nordic countries.”

“Our AAA rating is of course the ultimate stamp of quality, as it allows us to raise funds in the best available manner.”

There is much talk about SMEs’ unmet financing needs, what is NIB doing?

“Sure, there is clearly a broad consensus that SMEs’ access to funding should be improved and that we need a broader product portfolio than what exists today. At NIB, we are continuously working to develop our loan offering to the SME sector.”