Stockholm (NordSIP) – In a one-two news punch this week, the Nordic Investment Bank (NIB) invested €25 million in a Lithuanian green bond issuance and signed a cooperation agreement with the China Development Bank (last week).
NIB subscribed to the first green bond issuance made by leading Lithuanian energy supplier Lietuvos Energija (Lithuanian Energy), investing €25 million of its €500 million facility earmarked for green bonds issued in member countries to finance projects aimed at mitigating climate change. The objective of the NIB investment facility is to contribute to the development of the green bond market throughout the Nordic and Baltic regions.
This particular investment will go towards supporting both biomass and waste-to-energy facilities in Lithuania, alongside other renewable energy sources. The Lietuvos bond issuance has already attracted 120 investors from 25 countries, with the proceeds from this issuance going towards financing the transition to low-carbon and climate resilient growth and a sustainable economy. Investments are primarily intended for wind, waste and biomass production and improved distribution grid efficiency. Lietuvos Energija is state-owned and is the largest company in the Lithuanian energy sector.
Meanwhile, NIB President Henrik Normann and Chairman of the China Development Bank Hu Huaibang signed a cooperation agreement in Oslo last week (July 10) aimed at supporting economic activities and environmental improvements in compliance with each bank’s respective mandates, The Financial reported.
“NIB’s member countries greatly appreciate China’s support for international trade and believe that a concerted effort can do a lot to improve the environmental challenges on a global scale,” Mr Normann said at the signing ceremony. “NIB welcomes the opportunities to assist in technology transfer, in particular green technologies, from the Nordic-Baltic to support transition to low-carbon economies around the world.”
As China’s largest development financial institution simultaneously mandated to strengthen its competitiveness, the CDB supports key industries with a view towards promoting sustainable development of the national economy and Chinese society. Its loan portfolio totals US$ 1.4 trillion, of which 15% is placed outside China.
“China is working towards mitigating climate change and rescuing environmental pollution by introducing new climate-friendly technologies. The CDB would appreciate joint efforts with NIB to transfer technologies from NIB’s member regions,” Mr Hu said. “The CDB has supported innovations in the Nordic automotive industry and research into biofuels, made investments in solar energy, pulp and paper manufacturing, and the sea transport and logistics sector.”
As mutual borrowers in the Nordic-Baltic region, NIB and the CDB are searching for co-financing opportunities in NIB member countries (Denmark, Sweden, Finland, Norway, Lithuania, Latvia, Estonia and Iceland). These are becoming increasingly central to China’s policy for international cooperation with a pronounced focus on environmental technologies, fisheries and energy.
Picture (c) Bruce-Rolff—shutterstock