NIB and Skanska Forge Path to Carbon Reduction with $75 Million Loan Deal

NIB and Skanska Forge Path to Carbon Reduction with $75 Million Loan Deal

(IN BRIEF) The Nordic Investment Bank (NIB) and Skanska Financial Services AB have entered a six-year USD 75 million sustainability-linked loan agreement. This loan’s interest rate margin is tied to Skanska’s climate targets, including a 70% reduction in absolute GHG emissions for its operations and a 50% reduction for buildings developed and sold by Skanska by 2030. These targets align with the Science Based Targets initiative for 1.5°C climate alignment. The loan is aimed at supporting Skanska in reaching its ambitious climate goals and promoting sustainability in the built environment, emphasizing innovative solutions for energy-efficient buildings. André Küüsvek, President and CEO of NIB, highlighted the importance of aligning financing with sustainability objectives to drive industry transformation toward net-zero building and living standards.

(PRESS RELEASE) HELSINKI, 18-Jan-2024 — /EuropaWire/ — The Nordic Investment Bank (NIB), an international financial institution with focus on the Nordic and Baltic countries, and Skanska Financial Services AB have formalized a six-year USD 75 million sustainability-linked loan agreement. This innovative financing arrangement ties the loan’s interest rate margin to Skanska’s environmental commitments, particularly focusing on reducing CO2 emissions. The loan’s Key Performance Indicators (KPIs) are directly related to Skanska’s climate targets, which have received validation from the Science Based Targets initiative (SBTi) for their alignment with the 1.5°C pathway. Skanska aims to achieve a 70% reduction in absolute GHG emissions across the Skanska Group’s operations (scopes 1 and 2) by 2030 as its primary KPI. The secondary KPI focuses on a 50% reduction in absolute GHG emissions during the use-phase by 2030 for buildings developed and sold by Skanska (scope 3). These targets underscore Skanska’s commitment to promoting innovative sustainable solutions, particularly highly energy-efficient buildings, to meet the rising demand from customers.

André Küüsvek, President and CEO of the Nordic Investment Bank, highlighted the significance of aligning financing with sustainability objectives in supporting Skanska’s ambitious climate goals and efforts to decarbonize the built environment. He said “Linking financing to sustainability objectives effectively supports Skanska in reaching its ambitious climate goals and the efforts to decarbonise the built environment. Moving forward, scaling these solutions will be critical for driving the industry transformation required for net-zero building and living.”

Founded over 135 years ago, Skanska has evolved into a prominent development and construction group with a 2022 revenue of SEK 162 billion and approximately 28,000 employees. The company operates across the Nordics, Europe, and North America.

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
Nicolas Audibert, Director & NIB Country Lead for Sweden, at +358 10 618 0689, Nicolas.Audibert@nib.int

Iiris Anttalainen, Communications, at +358 10 618 0258, Iiris.Anttalainen@nib.int

SOURCE: Nordic Investment Bank