25. May 2018
LHV Pank signed a 5-year unsecured loan agreement, in the amount of 20 million €, with the Nordic Investment Bank (NIB), to expand the loan facilities of small and medium-sized enterprises.
The launched loan programme is aimed mainly at two goals: increasing the competitivness of SMEs and providing financing for environmental investments. The loan is suitable for the development of business and purchasing equipment or machinery or for making other investments. The aim of environemental investments could be reducing green house gases, pollution in the Baltic Sea area and other negative inpacts on the environment.
According to the conditions of the loan agreement, signed with NIB, LHV is to relend thf 20 million € to enterprises within 24 months and add its own additional contribution.
“The conditions of the loan programme are favourable for LHV Bank as the senior unsecured loan is quaranteed by LHV Group and there are no additional conditions, which would establish restrictions or obligations for LHV that differ from our internal objectives. This is the first time since 2005 that NIB is financing and Estonian credit institution,“ said Juhan Peet, Head of treasury in LHV. “Even though LHV’s level of liquidity is very high a new prudential regulation was introduced as of this year which means that we need to attract longer term funding in addition to deposits. The agreement with NIB is a follow-up to the last year’s agreement with EIF and serves the bank’s interest to involve funds on the international money markets to finance Estonian enterprises under favourable conditions,” Peet added.
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.
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