Iceland’s Keflavík Airport to Expand with EUR 50 Million Loan from NIB

Iceland’s Keflavík Airport to Expand with EUR 50 Million Loan from NIB

(IN BRIEF) Nordic Investment Bank (NIB) and Isavia ohf. have signed a 10-year loan agreement worth EUR 50 million to finance the expansion of Keflavík International Airport in Iceland. The project includes the construction of a new East Wing Terminal, which will increase the terminal area by 30%. The expansion aims to enhance passenger experience, accommodate growing demand, and support the tourism and aviation industry. The loan agreement ensures the successful completion of the project, which is scheduled for 2024. Isavia ohf. is responsible for the development and operation of public airports in Iceland, and Keflavík International Airport serves as the country’s main international hub.

(PRESS RELEASE) HELSINKI, 19-May-2023 — /EuropaWire/ — The Nordic Investment Bank (NIB), an international financial institution with focus on the Nordic and Baltic countries, and Isavia ohf. have joined forces in a 10-year loan agreement worth EUR 50 million to fund the construction of Keflavík International Airport’s expansion, featuring a state-of-the-art East Wing Terminal.

The addition of the new terminal will expand the main terminal building by 23,000 m2, resulting in a 30% increase in total terminal area. This expansion project is a significant step in Isavia’s ongoing commitment since 2014 to enhance the passenger experience and meet the rising demand for air travel to and from Iceland. The new facility is anticipated to achieve an Excellent rating according to the international BREEAM classification and is slated for completion by 2024.

As Iceland’s largest airport and the primary hub for international air travel, Keflavík International Airport plays a pivotal role in connecting Iceland with the rest of the world. The construction of the East Wing Terminal is expected to provide travelers with improved facilities, augment the airport’s overall capacity, and stimulate the growth of tourism and the aviation industry in Iceland. The loan agreement between NIB and Isavia ohf. will ensure the successful realization of the expansion project, fostering continued progress and development for Keflavík International Airport.

Isavia ohf., entrusted with the development and operation of all public airports in Iceland, also manages air traffic within the Iceland Air Control Area, encompassing 5.4 million square kilometers, including upper airspace over Greenland and a significant portion of the North Atlantic. Keflavík International Airport serves approximately 28 international airlines, facilitating regular flights between Iceland, 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
Stefán Jón Friðriksson, Senior Banker, Lending, at +358 50 3111 050, Stefan.Fridriksson@nib.int

David B Rasmusson, Communications, at +358 50 476 3071, David.Rasmusson@nib.int

SOURCE: Nordic Investment Bank