NIB Partners with SCA to Fund Fasikan Wind Farm in Northern Sweden

NIB Partners with SCA to Fund Fasikan Wind Farm in Northern Sweden

(IN BRIEF) The Nordic Investment Bank (NIB) has inked a 10-year loan agreement with Svenska Cellulosa Aktiebolaget SCA (Publ) to co-finance the Fasikan Wind Farm in Jämtland county, northern Sweden. Valued at SEK 1 billion, this loan will bolster the forest products company’s wind power endeavor, aiming to construct 15 new wind turbines generating 333 GWh annually, sufficient to power approximately 15,000 households. The project, initiated in November 2023, is slated for completion by early 2026. NIB’s continued collaboration with SCA underscores a shared commitment to innovation and renewable energy, amplifying productivity and competitiveness in the region.

(PRESS RELEASE) HELSINKI, 26-Mar-2024 — /EuropaWire/ — The Nordic Investment Bank (NIB) has signed a 10-year loan with Svenska Cellulosa Aktiebolaget SCA (Publ) to co-finance the Fasikan Wind Farm in Jämtland county in northern Sweden.

The SEK 1 billion loan will support the construction of the forest products company’s wind power project in in Bräcke municipality, Jämtland county in northern Sweden.

The project consists of 15 new wind turbines with a total annual production capacity of 333 GWh. This corresponds to an annual consumption of electricity for approximately 15,000 households. Work with felling and strengthening work on existing roads began in November 2023, and the wind farm is scheduled for completion in beginning of 2026.

“This is NIB’s fifth long-term loan to SCA since 2007, supporting SCA on their journey towards innovation. This investment in renewable wind energy is crucial for enhancing productivity and securing competitiveness in our region,” says Kim Krokfors, NIB Senior Banker and Country Lead for Finland.

“The 10-year loan from NIB will diversify our funding base and prolong the average maturity of our debt portfolio,” says SCA Group Treasurer Jörgen Elf.

Previously, NIB has provided four long-term loans to SCA projects, of which the most recent was a loan in 2019 to facilitate the expansion of its pulp mill in Timrå municipality.

The core of SCA’s business is the forest, through Europe’s largest private forest holding. The forest products company offers paper for packaging and print, pulp, wood products, renewable energy, services for forest owners and transport solutions. In 2023, the company added Renewable Energy as a separate business segment owed to its growing significance. SCA was founded in 1929 and is headquartered in Sundsvall, Sweden.

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.

Media Contacts:

Kim Krokfors
Senior Banker, Country Lead for Finland
+358 10 618 0517
kim.krokfors@nib.int

David Rasmusson
Communications
+358 50 476 3071
david.rasmusson@nib.int

SOURCE: Nordic Investment Bank