NIB signs 7-year loan to finance electricity investments in Norway
The Nordic Investment Bank (NIB) agrees a 7-year loan agreement with Linja AS to finance electricity network investments in Western Norway between 2022 and 2026.
The NOK 200 million (EUR 17 million) loan will co-finance the construction of new power lines, a new substation, and the refurbishment of existing infrastructure within the Møre og Romsdal county. By expanding the distribution capacity, reducing power outages, and facilitating the electrification of transport, Linja AS aims to meet the rising demand for electricity and drive sustainable development in the region.
The total amount of the investment programme during 2022-26 is NOK 456 million, of which NIB will finance approximately 44%. The project’s investment will support the ambition of the Norwegian Energy Commission to achieve energy efficiency of 20 TWh/y and 40TWh/y in a new power generation by 2030 as grid investments are one of the critical investment areas.
“This investment serves as a critical enabler for driving the transition towards a more sustainable Norway, marking a significant milestone in our commitment to fostering a resilient and greener energy landscape,” says André Küüsvek, NIB President and CEO.
“The region is home to an important business community that thrives on innovation and continuous progress. It is, therefore, crucial to have a grid firm who possesses the necessary expertise and financial capabilities to effectively manage and develop the power grid as a facilitator for the green transition. We are currently funded by NIB, and we highly value the ongoing partnership with the bank as an important strategic partner for us, ” says Rune Kiperberg, Linja AS CEO.
Linja AS is an electricity distribution network company (DSO) operating in Møre og Romsdal and Sogn og Fjordane counties in Western Norway. It is responsible for ensuring the safe and reliable distribution of electricity to residential, commercial, and industrial customers in their operating area. Linja AS plays an important role in supporting the energy needs of the region and promoting sustainable development in line with Norway’s energy and climate goals.
NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in 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 contact:
Patrik Marckert, Senior Banker, at +358 10 618 0266, Patrik.Marckert@nib.int
David B Rasmusson, Communications, at +358 50 476 3071, David.Rasmusson@nib.int
