NIB signs first sustainability-linked loan to real estate sector with Entra ASA

• NIB has signed a 12-year sustainability-linked loan (SLL) with Norwegian real estate company Entra ASA.
• The NOK 1.5 billion loan will finance Entra's sustainability investments.
• Entra has committed to reducing its greenhouse gas emissions in line with the Paris Agreement's 1.5°C target, and the company's near-term and long-term emission reduction targets are validated by the Science Based Targets initiative (SBTi).

The interest rate margin on the sustainability-linked loan with Entra is connected to key performance indicators (KPIs) pertaining to the reduction of upfront embodied emissions related to new construction and major renovations, as well as maintaining in-use operational greenhouse gas (GHG) emissions from the property portfolio at or below base year levels.

The agreed indicators are:

• KPI 1: Maintain scope 1, 2 and 3 in-use operational GHG emissions of owned and leased buildings at or below 1.16 kgCO₂e per m² up to 2030 from a 2023 base year
• KPI 2: Reduce upfront embodied emissions of new buildings 45.5 per cent per m² by 2030 from a 2023 base year
• KPI 3: Reduce upfront embodied emissions of major renovations 42 per cent per m² by 2030 from a 2023 base year.

KPI 1 and KPI 2 have been validated by the Science Based Targets initiative (SBTi). KPI 3 is derived from Entra's SBTi-approved trajectory to reduce all other Scope 3 emissions by 42 per cent by 2030.

"We are excited to sign our first sustainability-linked loan to the real estate sector and continue our partnership with Entra as they pursue their journey on path to net-zero emissions. The SLL creates financial incentives for Entra to achieve the agreed and material targets," says André Küüsvek, NIB President and CEO.

"NIB's first sustainability-linked loan to the real estate sector is a clear acknowledgement of Entra's long-term commitment to reduce carbon emissions and demonstrates how our strategy can generate tangible commercial value. The loan's favourable characteristics further strengthen our financial position and support targeted investments to reduce emissions across both new developments and the existing portfolio. Delivering measurable, science-based climate outcomes is central to our strategy, and we value NIB's partnership as we continue our transition towards net zero," saysSonja Horn, CEO, Entra ASA.

Entra ASA, founded in 2000, is a Norwegian real estate company. Their portfolio consists of 80 properties, with the majority located in the Oslo area. Entra is listed on Oslo Børs Euronext.

NIB is the international financial institution of Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden. The Bank finances projects that improve productivity and benefit the environment of the Nordic-Baltic region. The Bank is headquartered in Helsinki with a regional hub in Riga. NIB has the highest possible credit rating, AAA/Aaa, with S&P Global Ratings and Moody's.

Contact:

Sari Cabell, Senior Banker, +358 10 618 0519, [email protected]

Tommy Hellström, Associate Communications Officer, +358 10 618 0214, [email protected]