NEFCO will set up a new credit line for financing Nordic deliveries to projects with environmental benefits in Russia, Ukraine and Belarus. The new credit line will be rolled out in close cooperation with the Nordic export credit institutions, which will provide loan guarantees for the projects concerned. This was decided at NEFCO’s Board meeting in Moscow today.
In practice, the credit line will offer loan financing for export deliveries worth less than EUR 5 million. There is currently a lack of export credit financing from commercial banks for small and medium sized projects worth EUR 1-5 million. This financial gap makes it difficult for smaller Nordic companies to deliver equipment for a number of projects and investments outside the Nordic region.
“Our expanded mandate will enable us to lend our support to Nordic companies that are exporting environmental technology and investing in green growth in the countries where we operate,” says Maria Maliniemi, Investment Manager, NEFCO.
The environmental benefits in this credit line arrangement will arise from exports and the installation of energy efficient and environmentally friendly Nordic technology. The new credit line can consider projects in the mining, water, energy and agricultural sectors as well as in the food industry, for example.
NEFCO’s Board of Directors convenes in Moscow on 18-19 September. The Board will visit the Russian Ministry of Natural Resources and Environment, among other engagements.
“We want to discuss different ways of furthering international cooperation to improve the ecological status of the Baltic Sea as well as environmental investments in the Arctic and the Barents regions,” says Magnus Rystedt, Managing Director, NEFCO.