Denmark. Føroya Banki P/F
| Date of agreement: | 03 Jul 2024 |
|---|---|
| Country: | Denmark |
| Customer: | Føroya Banki P/F |
| Amount in DKK: | DKK 300 million |
| Amount in EUR: | EUR 40 million |
| Maturity: | 7 years |
| NACE sector / loan type: | Loan programme |
Facilities
Arctic Financing Facility (read more): 100%
Project
The loan has been provided for the Faroese Føroya Banki (previously known as BankNordik P/F) for on-lending to small and medium-sized enterprises (SMEs) and small mid-caps as well as environmental projects in the Faroe Islands and Greenland.
The seven-year loan facility will provide continued access to financing for SMEs and small mid-caps in various sectors as well as environmental projects in the Arctic region.
This is the third loan facility agreed between NIB and BankNordik; the first was signed in 2014 and the second one in 2021.
Fulfilment of NIB's mandate
By easing credit constraints, a recognized obstacle for small and medium-sized enterprises, this project aims to stimulate productivity growth. In the context of NIB member countries, where SMEs contribute significantly to overall output and employment, enhanced access to financing for productivity-enhancing initiatives can foster a more competitive and efficient market.
Most of the loan programme’s allocations are expected to go to SMEs. Still, eligible investments further include environmental projects with both private and corporate clients.
Sustainability summary
Projects that are financed through a financial intermediary are required to fulfil the requirements defined in NIB’s Sustainability Policy.
