NIB ENVIRONMENTAL BONDS · 20 Excellent Total score and rating Realisation risk assessment Technological, ecological, social, governance, legal realization risks NIB ENVIRONMENTAL

NIB ENVIRONMENTAL BONDS 1

Certain of the statements contained in this Presentation may be statements of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results. performance or events to differ materially from those expressed or implied in such statements. In addition to statements that are forward-looking by reason of context. the words “may. will. should. plans. intends. anticipates. believes. estimates. potential. or continue” and similar expressions identify forward-looking statements. Actual results. performance or events may differ materially from those in such statements. due to. without limitation. general economic conditions. including in particular economic conditions and markets. performance of financial markets. interest rates. currency exchange rates. changing levels of competition.changes in laws and regulations. changes in the policies of central banks and/or foreign governments. and general competitive factors. in each case on a local. regional. national and/or global basis. NIB assumes no obligation to update any forward-looking information contained in this Presentation.

THIS PRESENTATION DOES NOT CONSTITUTE AN OFFER TO SELL. OR A SOLICITATION OF AN OFFER TO BUY SECURITIES. NOR IS THIS DOCUMENT OR THE INFORMATION CONTAINED HEREIN MEANT TO SERVE AS A BASIS FOR ANY KIND OF OBLIGATION. CONTRACTUAL OR OTHERWISE. THIS PRESENTATION HAS BEEN FURNISHED ON A CONFIDENTIAL BASIS SOLELY FOR THE INFORMATION OF THE PERSON TO WHOM IT HAS BEEN DELIVERED AND MAY NOT BE REPRODUCED OR USED FOR ANY OTHER PURPOSES. Other then in respect of the securities registered under the U.S. Securities Act of 1933 as amended ( the "Securities Act") pursuant to Nordic Investment Bank’s registration statement on file with the U.S. Securities and Exchange Commission the securities described in this presentation. have not been and will not be registered under the Securities Act of 1933. or with any regulatory authority of any state or other jurisdiction in the United States of America and may not be offered or sold in the United States except in a transaction pursuant to an exemption from. or in a transaction not subject to. the registration requirements of the Securities Act. Nordic Investment Bank does not intend to register these securities under the Securities Act or to conduct a public offering thereof in the United States.

This Presentation may not be brought into or transferred to the United States of America or distributed to staff members of or companies associated with the recipient in the United States. In other legal systems. this Presentation may only be distributed in compliance with the respective applicable law. and persons obtaining possession should familiarise themselves with and adhere to the relevant applicable legal provisions. Any breach of these restrictions may constitute a violation of United States securities law or of the law applicable in other legal systems. Each person accepting this Presentation hereby agrees not to reproduce this Presentation or any information contained herein or to divulge the contents hereof to any person and to return this Presentation to NIB promptly following any request therefore by NIB. 22/10/2020

DISCLAIMER

Not for distribution in the USA2

Based in Northern EuropeSOLID OWNERSHIP BASIS

Not for distribution in the USA

Credit rating Ownership

Sweden Aaa/AAA 34.6%

Norway Aaa/AAA 21.5%

Denmark Aaa/AAA 21.1%

Finland Aa1/AA+ 17.7%

Lithuania A3/A+ 2.0%

Latvia A3/A+ 1.3%

Estonia A1/AA- 0.9%

Iceland A2/A 0.9%

Moody's and S&P's ratings as of April 2020

3

A committed bank for a

PROSPEROUSNordic-Baltic Region

& SUSTAINABLE

IMPROVING PRODUCTIVITY

BENEFITING THEENVIRONMENT

• Technical progress and innovation

• Infrastructure improvements

• Human capital and equal economic opportunities

• Market efficiency and business environment

• Pollution reduction

• Preventive measures

• Resource efficiency

• Development of clean technology

• Climate changemitigation


NIB Vision and Mandate

Not for distribution in the USA

NIB Environmental Bond Framework

We confirm projects’ eligibility against a set of criteria within the following project categories:

Review of environmental and social risks

We confirm that there are no significant environmental or social risks connected to the project.

NEB Fund Pool

Straight link between NEB proceeds and disbursements to eligible projects.

Reporting

Annual reporton the allocation of NEB proceeds and the impact of projects financed.

Rating Scale

ENVIRONMENTAL BENEFITS

Pollution reduction

Preventive measures

Resource efficiency (incl. circular economy)

Climate change mitigation

Excellent

Good

Ex-post mandate assessment

After three years, NIB will carry out an ex-post assessment of financed projects regarding the fulfilment of the Bank's mandate.

Moderate

Marginal

Neutral

Negative

Mandate Rating

21 3 4 5 6

Energy efficiency Renewable energy generation Transmission, distribution

and storage systems Clean transport solutions

Water management and protection

Resources and waste management systems

Green buildings

5

NIB ENVIRONMENTAL BONDS Process Overview

1. WHAT IS NIB 2. VISION AND MANDATE 3. LENDING 4. FUNDING ANNEX5. NEB


Qualitative sector assessmentContribution of the sector to the environmental objectives for:- Pollution reduction- Preventive measures (incl. adaptation)- Resource efficiency (incl. circular economy) - Climate change mitigation

Negative 0 10 20

Quantitative impact assessmentLocal Impact: -10 … +10- Pollution, air, water, other - Transformative industry- Closure of material loops- Green building standards

Global Impact: -10 … +10- Renewable energy- Energy use and efficiency- Greenhouse gas emissions

-20 …. +20

Sectoral score Impact score

≤ -5Negative

-5 … +5Neutral

6 … 10Marginal

11 … 15Moderate

16 … 20Good

≥ 20Excellent

Total score and rating

Realisation risk assessmentTechnological, ecological, social, governance, legal realization risks

NIB ENVIRONMENTAL BONDS Project evaluation and selection – Mandate rating


Energy efficiency Reduction of energy use by min. 30%

Renewable energy generation Wind turbines, solar, tidal and existing or small hydropower plants Electricity or heat from geothermal or biomass Infrastructure for liquid sustainable biofuel Investments in R&D for renewable energies

Transmission, distribution and storage systems Expansion or upgrades to connect renewable energy District heating or cooling networks upgrades to carbon neutral

energy supply systems

Water management and protection Wastewater treatment and pollution prevention Stormwater systems and flood protection Protection of water resources Protection and restauration of water ecosystems

Resources and waste management Resource efficiency in support for circular economy Infrastructure for better waste management Energy recovery from waste (considering circular economy)

Clean transport solutions Based on electricity or sustainable biofuels Infrastructure for clean transport solutions

Green buildings LEED Platinum or BREEAM Excellent or Outstanding

NIB ENVIRONMENTAL BONDS Project evaluation and selection – NEB Categories


Sustainability and Mandate Rating Unit

Identifies and pre-selects eligible NEB loans

Sustainability Review

Mandate Rating

Credit Committee

Approves pre-selected NEB loans as eligible

Treasury

Decides on issuance of NEB bonds

Manages NEB fund pool

NIB ENVIRONMENTAL BONDS Project evaluation and selection – Governance


NEB bond issue

Short term funding

NEB fund pool

NIB ENVIRONMENTAL BONDS NEB Fund Pool – separation of funds

Eligible projects

Short term investment

Proceeds Disbursements

Treasury


0.375%Bond due 2024NEB – Blue Bond

2.0bnSEK

0.000%Bond due 2027Environmental Bond

500mnEUR

0.50% MTN Bond due 2025Environmental Bond

500mn

0.50%Bond due 2023Environmental Bond

3.0bnSEK

0.125% MTN Bond due 2024Environmental Bond

1bn

Selected outstanding NIB Environmental Bonds NIB Environmental Bond issuance 2011-2020 total EUR 4.9bn (23 bonds)

NIB ENVIRONMENTAL BOND

0

100

200

300

400

500

600

700

800

900

1000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

EUR

mill

ion

0.100%Bond due 2025NEB – Blue Bond

SEK 1.5bn

NIB ENVIRONMENTAL BONDSProjects 2011-2020 YTD (including Blue bonds)


Projects by NEB category Projects by country

approx. 90 projects financed (as of Oct 2020) 6¼]

Transmission, distribution and storage systems

0 %

Resources and Waste Management Systems 3 %

Energy efficiency 7 %

Clean transport solutions 13 %

Water management and protection 24 %

Renewable energy generation26 %

Green buildings 27 %

Estonia 0 %Denmark 2 %

Poland 2 %Lithuania 4 %

Finland 21 %

Norway 27 %

Sweden44 %


Project-specific impact data and NIB’s methodology for assessing impact is published on our website: https://www.nib.int/investors/environmental_bonds

https://www.nib.int/investors/environmental_bonds


Project-specific impact data and NIB’s methodology for assessing impact is published on our website: https://www.nib.int/investors/environmental_bonds

https://www.nib.int/investors/environmental_bonds

Nya Slussen, Stockholm, Sweden

Reshaping Slussen in StockholmFinancing clean transport solutions at the Slussen traffic hub, and the redevelopment of the Slussen water locks.

The expansion of the water locks will increase the drainage capacity and accommodate higher floodgates by adding two larger water channels beside the locks.

The Nya Slussen redevelopment project is a crucial flooding mitigation measure that will allow Stockholm and the Mälar region to prepare for the effects of rising sea levels and more extreme weather conditions in the future.

Disbursed: SEK 500mnAverage maturity: 10yNEB eligibility: 100%(68% Water management and protection32% Clean transport solutions)

14Not for distribution in the USA

Fjord1 ASA, Norway

Electrical ferries in NorwayFjord1 and NIB has signed a loan to finance the acquisition of twelve hybrid-electric ferries.

The new ferries are designed to run on electricity in their everyday operation, and the batteries will be charged when docked. The energy efficiency of operations is expected to improve by 30-40%, and CO2 emissions are estimated to decrease by approx. 50,000 tonnes a year, as the new vessels will replace older, diesel-driven ferries.

The project carries a significant demonstration value for a hard-to-transition industry such as shipping.

Disbursed: NOK 750 millionAverage maturity: 5yNEB eligibility: 100%(Clean transport solutions)






15Not for distribution in the USA

Lidl Sweden

Green buildings in SwedenLidl Sverige and NIB signed a loan to finance the construction of new BREEAM Excellent certified stores, headquarters and logistics operations in Sweden.

All buildings are in the process of being certified as BREEAM Excellent, and are expected to be using 30-60% less energy than is required in Sweden’s national building code. The projects include the installation of solar photovoltaic cells with a combined total energy output of 1,000 Mwhper year. In addition to BREEAM Excellent, the store in Visby is in the process of being certified according to the new Zero-CO2 standard for climate neutral buildings

Disbursed: SEK 500 millionAverage maturity: 10yNEB eligibility: 100%(Green buildings)

NIB ENVIRONMENTAL BONDSNordic-Baltic Blue Blonds


Issued under NIB Environmental Bond framework Focus projects within the Water management and protection

category only

– Wastewater treatment and water pollution prevention: reducing discharges into water

– Stormwater systems and flood protection: pollution prevention and the development of climate change resilient infrastructure

– Protection of water resources: minimizing groundwater extraction and contamination, and improving the replenishment of aquifers

– Protection and restoration of water and marine ecosystems: extension of protected areas, protection and restoration of water and marine ecosystems, and biodiversity

Separate reporting in NEB annual impact report

Jan 2019

Orderbook: SEK 3.2bn21 orders

SEK 2.0bn 0.375% NEB –Blue Bond due

2024

Sep 2020

Orderbook: SEK 2.5bn13 orders

SEK 1.5bn0.100% NEB –Blue Bond due

2025






17 Not for distribution in the USA

Finnish water services companyTurun seudun puhdistamo OyÅbo, Finland

Wastewater treatment modernisationThe loan is for modernising an existing wastewater treatment plant. The project will separate the wastewater and storm water discharge systems, enabling the utilization of its full wastewater treatment capacity during extreme weather conditions. It will reduce the overflows of untreated wastewater as well as the nutrient and microbiological load on the environment. The microbiological load will be further reduced by installing effluent disinfection units.

Due to climate change, the heavy rainfalls are predicted to become more common and the maximum sea level to rise in the future.

Disbursed: EUR 15mnAverage maturity: 30yNEB eligibility: 100%(100% Water management and protection)

18 Not for distribution in the USA


NIB Engaged in developing Sustainable Finance

NIB is a member of the Green Bond Principles Executive Committee • Co-coordinating the Impact working group and the Q&A Guidance Handbook

EU Action Plan / Technical Expert Groups• NIB provides technical expert feedback to consultation documents (taxonomy, standards etc)

Observer to the Network for Greening the Financial System (NGFS) Member of Nasdaq Sustainable Bond Network – Advisory Board Collaboration with Japan's Government Pension Fund (GPIF) Signatory of TCFD, PRI, PRB Internal ESG project and Sustainability Council – walk the talk

Jens HellerupSenior DirectorHead of Funding & Investor Relations

Tel: +358 9 61811401Email: [email protected]

Nordic Investment Bank – www.nib.intTwitter: https://twitter.com/nib

Alexander RufDirectorFunding & Investor Relations


Angela BrusasDirectorFunding & Investor Relations


We’re aRELIABLEinvestment target

LinkedIn: https://www.linkedin.com/ company/nordic-investment-bank/

https://twitter.com/nib

https://www.linkedin.com/company/nordic-investment-bank/

Documents

NIB ENVIRONMENTAL BONDS · 20 Excellent Total score and rating Realisation risk assessment Technological, ecological, social, governance, legal realization risks NIB ENVIRONMENTAL