NIB finances Norwegian Statnett's subsea power cables

NIB and the Norwegian grid operator Statnett have signed a loan totalling NOK 1,300 million (EUR 165 million) for the partial financing of the new subsea cable between Norway and Denmark and the upgrade of Statnett’s existing cable across the Oslofjord.

The 16-year-maturity loan will help finance the construction of a new High Voltage Direct Current (HVDC) power connection across the Skagerrak strait, known as Skagerrak 4. The cable will be 240 km long, of which 140 km is under the sea bed, and will have a capacity of 700 MW.

The new cable, scheduled for completion by the end of 2014, will improve the security of energy supply and increase power exchange with other countries. By increasing the export of clean, Norwegian hydropower, and the potential increase in Danish wind power, Skagerrak 4 supports a more environmentally friendly European power market.

The upgrading of the 13 km subsea cable across the Oslofjord is expected to be finalised by the end of 2012. The power cable, which has been in operation since 1981, secures the supply of electricity in the eastern regions of Norway and is important for the exchange of electricity with Sweden.

“Security of supply and environmental sustainability are key challenges for the energy sector in the Bank’s member countries and beyond,” says Johnny Åkerholm, NIB President and CEO.

“We are pleased to be part of the Skagerrak 4 and Oslofjord power cable projects, which will enhance regional transmission of clean energy.”

Statnett is the Transmission System Operator of the Norwegian electric power system. It is a state enterprise owned by the Norwegian State through the Ministry of Petroleum and Energy. Statnett is responsible for all high voltage electricity transmission in Norway.

The Nordic Investment Bank (NIB) is the common international financial institution of the eight Nordic and Baltic countries. NIB provides long-term financing to the energy, environmental, transport, logistics and communications, and innovation sectors for projects that strengthen competitiveness and enhance the environment. 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

Vidar Omholt, Senior Manager Origination, at +358 10 618 0286,

mixIt(‘vid’,’ar.omholt’,’nib’,’.int’,”,’1319022610874-0′);

Nina Monsen, Senior Communications Specialist, at +358 10 618 0291,

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