The Nordic Investment Bank (NIB) has provided a loan totalling SEK 600 million (EUR 67 million) to the Swedish energy company Växjö Energi AB. The loan will finance the company's investment in a new combined heat and power plant.
The loan has a 20-year maturity, and will partly finance a new combined heat and power plant in the southern Swedish city of Växjö. The new power plant will be totally bio-fuelled, and additional renewable power will be generated. The investment will therefore indirectly result in a significant decrease of greenhouse gas emissions.
"NIB is pleased to participate in a project that contributes to the replacement of fossil fuels with biofuels, which is in line with our mission to promote sustainable growth. Due to this project, the use of fossil fuels will diminish in Växjö Energi's power production," says Henrik Normann, NIB President and CEO.
Växjö Energi AB is an energy company fully owned by Växjö Municipality. The company produces and distributes district heating, cooling and electricity, and is responsible for the expansion of the district and local heating in the region. The loan to Växjö Energi is financed under NIB's Climate Change, Energy Efficiency and Renewable Energy Facility (CLEERE).The Nordic Investment Bank (NIB) is the common international financial institution of the eight Nordic and Baltic countries. NIB provides long-term financing to the energy, environmental, transport, logistics and communications, and innovation sectors for projects that strengthen competitiveness and enhance the environment. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor's and Moody's.