The Ministry of Agriculture and Forestry organized a Finnish-Swedish Forest Friends Forever Conference in Hanaholmen, Espoo on 17-18 April. The purpose of the conference was to thank Sweden for the gift in honour of Finland’s 100 years of independence and to further enhance Finnish-Swedish cooperation in research and innovation and in forest policy. Espoo, 17.–18.4.2018

1. The International Financial Institution of
the Nordic and Baltic countries

2. Providing long-term value
 AAA/Aaa-rated supranational
institution
 Strong support from member
countries
 Solid financial performance
 Explicit environmental
mandate
 High asset quality
 Successful capital market
transactions
12 April 2018

3. Long-term lending instruments
 Corporate loans, 5–15
years
 Financing via financial
intermediaries,
5–12 years
 Sovereign loans to states
or against state guarantee,
15–25 years
 Sub-sovereign loans
directly to municipalities,
10–20 years
 PPP financing, 5–15 years
12 April 2018

4. Vision and mission
 Our vision is a prosperous and
sustainable Nordic-Baltic region
 Our mission is to finance
projects that improve
competitiveness and the
environment of the Nordic and
Baltic countries.
12 April 2018

5. We finance
Environment
Projects that lead to:
 improved resource efficiency
 development of a competitive
low carbon economy
 protection of the environment
and its ecosystem services
 development of clean technology
Competitiveness
Projects that support:
 technical progress and
innovation
 development of human capital
 improvements in infrastructure
 increased market efficiency
12 April 2018

6. Recent activity
 Loans agreed totalled EUR 3.8 billion in 2017
 NIB raised EUR 5.9 billion in new funding
 Despite unfavourable investment climate NIB's results remained
stable: profit of EUR 211 million in 2017
 Loans achieving a “good” or “excellent” mandate rating accounted for
97% of the total amount of lending
12 April 2018

7. Our projects in
member countries
City of Porvoo
Renovation of
school buildings
Landsnet hf.
Overhead
transmission lines
Iceland
Sparebank 1 SR-
Bank ASA
SME lending
Norway
Vasakronan AB
Green buildings
Sweden
Chr. Hansen A/S
Biotechnology
R&D
Denmark
Lithuanian Airports
Upgrading three airpots
Lithuania
Finland
North Estonia
Medical Centre
Hospital expansion
Estonia
Rīgas Satiksme SIA
Hydrogen-fuelled
vehicles and low-floor
trams
Latvia
12 April 2018

8. 8
Sodium chlorate
production in
Joutseno
A EUR 90 million loan finances Kemira's
sodium chlorate production expansion
in Joutseno, Finland, and R&D costs
during 2016-2019.

9. BillerudKorsnäs
The loan has been provided to
finance BillerudKorsnäs'
investment in a new board
machine at the company's
production site in Gruvön,
Sweden.
The board machine will have
an annual capacity of
550,000 tonnes of liquid
packaging board, carton
board, food service board and
kraftliners.
 Loan: SEK 800 million
(EUR 78 million)
 Maturity: 7 years
 Country: Finland
 Obtained: 2018
Photo: BillerudKorsnäs

10. Södra Skogsägarna
Economic Association
Financing the expansion of the
Södra Cell pulp mill in Värö,
South West Sweden.
The Group invests in expansion
of the Värö mill, which enables it
to increase pulp production
capacity to 700,000 tonnes
annually. The expansion also
improves the Värö mill’s energy
efficiency.
 Loan: SEK 1 billion
(EUR 109 million)
 Maturity: 10 years
 Country: Sweden
 Obtained: 2016
Photo: Södra Skogsägarna Economic Association

11. Helen Oy
The loan has been provided
for the construction of a wood
pellet heating plant in
Salmisaari, Helsinki, Finland,
and an underground cooling
centre.
The new wood pellet plant will
have a fuel capacity of
100 MW and an estimated
district heat output of 92 MW,
or 230–280 GWh annually
 Loan: EUR 22 million
 Maturity: 12 years
 Country: Finland
 Obtained: 2016
Photo: Helen Oy

12. Essity
Financing R&D investments in
new sanitary care and the
development of new personal care
and tissue products.
The R&D programme focuses on
improving the quality of hygiene
and personal care items and aims
to advance the development of
non-woven tissues and wet
tissues.
 Loan: EUR 200 million
 Maturity: 8.5 years
 Country: Sweden
 Obtained: 2016
Photo: SCA.

13. Finnvera Oyj
NIB and Finnvera, the Finnish
state export credit agency,
signed a loan agreement re. a
credit facility that will be onlent
to a eucalyptus pulp mill project
in Brazil.
By providing financing, Finnvera
influences the competitiveness
of Finnish enterprises - their
opportunities to operate and
grow in Finland and to enter
international markets.
 Loan: USD 225 million
(EUR 199 million)
 Maturity: 9.5 years
 Country: Finland
 Obtained: 2016
Photo: Finnvera Oyj

14. Lahti Energia
Financing the construction of the
new bio fuelled heating plant
Kymijärvi III. The new bio fuelled
heating plant will replace the
existing coal-fired plant.
The design includes efficient flue
gas treatment, heat recovery from
the flue gas and treatment of
condensate from the heat
recovery. The project is expected
to decrease CO2 emissions by up
to 500,000 tonnes per year.
 Loan: EUR 75 million
 Maturity: 15 years
 Country: Finland
 Obtained: 2016
Photo: Lahti Energia

15. v
Nokianvirran
Energia
Financing a new biomass-
fuelled heat and steam
plant in Nokia.
The project will increase
output capacity, tangible
capital and productivity. It
will increase the security of
energy supply and add
value to forest biomass
processing in the region.
 Maturity: 15 years
 Loan: EUR 22 million
 Country: Finland
 Obtained: 2015
Nokianvirran Energia Oy
Photo: Pekka Aarnivala/Nokian Uutiset

16. Brazilian Development
Bank (BNDES)
Financing the construction of a
greenfield pulp production
facility in the state of Paraná,
Brazil.
The project is implemented by
Klabin S.A. and includes
construction of a transmission
line to connect the pulp mill to
the electricity grid, and
a secondary railway to link it to
the rail network.
 Loan: USD 100 million
(EUR 92 million)
 Maturity: 7 years
 Country: Brazil
 Obtained: 2015
Photo: BNDES

17. Fastighets AB ML 4
Financing the construction of
a synchrotron radiation facility
in Lund, Sweden.
The MAX IV synchrotron light
laboratory facility is offering
scientists of various
disciplines access to high-
intensity X-rays for material,
climate and medical research
 Loan: SEK 1.5 billion (EUR
161 million)
 Maturity: 24 years
 Country: Sweden
 Obtained: 2015
Photo: Wihlborgs Fastigheter AB

18. BillerudKorsnäs AB
Financing the company's
research and development
(R&D) programme in 2015-
2019.
The loan will assist
BillerudKorsnäs AB in
developing sustainable and
more energy-efficient material
technologies.
 Loan: SEK 300 million (EUR
31 million)
 Country: Sweden
 Maturity: 7 years
 Obtained: 2015

19. Valmet Corporation
Financing Valmet's R&D
programme for 2014-2017.
The R&D investment will be
distributed between the
company’s three main
business lines: paper, pulp
and energy, and services.
The programme has a strong
focus on developing products
that use less energy and
water and fewer chemicals.
 Loan: EUR 95 million
 Maturity: 8 years
 Country: Finland
 Obtained: 2015
Photo: Valmet

20. v
Borregaard
Financing Borregaard's R&D
programme for 2013–2016
and the recently
commissioned biological
purification plant, which will
reduce water-based
emissions.
 Maturity: 10 years
 Loan: EUR 40 million
 Country: Norway
 Obtained: 2014
Photo: Borregaard ASA

21. v
Fortum Värme
Holding
Financing a new biofuel
combined heat and power
plant in Stockholm.
Expected to increase the
use of biomass in the
Nordic-Baltic region, which
will diversify the energy mix
and lead to lower imports of
fossil fuels.
 Maturity: 12 years
 Loan: SEK 1.4 billion
EUR 155 million
 Country: Sweden
 Obtained: 2014
Visualisation: Fortum, Urban Design+Gottlieb Paludan

22. UPM-Kymmene Oyj
The loan has been provided to
UPM-Kymmene Corporation
for the construction of a
biorefinery in Lappeenranta,
Finland, producing advanced
biofuels from crude tall oil.
The biorefinery will produce
ca.100,000 tonnes of
renewable diesel annually for
the transportation sector.
 Loan: EUR 50 million
 Maturity: 7 years
 Country: Finland
 Obtained: 2013
Photo: UPM Kymmene Oyj

23. Concluding thoughts
12 April 2018
There is promising and high class R&D and projects with almost “ready to launch products” in
universities and research centres that get funding at an early stage. Challenge seems to be funding
the pilot phase, even more of a challenge is how to finance the first (small scale) production line.
1. There is a funding gap between research and start of industrial production. How could / should
this gap be filled?
All large players have lots of R&D, not only in how to make pulp production more efficient, but
especially in the use of side‐streams, for example ligning, tall oil and applications like wood based
textile fibres etc.
2. How extensive is the collaboration between the players? Could it be enhanced?
The Finnish strategy seems for now to be in line with EU’s 2020 Climate and Energy Package, 2030
Climate and Energy Framework etc. What if the EU in the future says that using wood directly for
energy production is not at all compliant any more with the targets and guidelines of the EU.
3. Should the possibilities for use of production side‐streams for energy production get a
substantially larger boost in R&D expenditures? Or what should be done?