An agreement between the Nordic Investment Bank and Sparebank 1 SMN worth more than US$163 million will help finance small hydropower development in Norway.
The 15-year maturity loan program has been earmarked for new construction and upgrades of Sparebank 1 SMN’s hydropower projects – most of which have installed capacities of between 1 and 5 MW.
“This loan is in line with our target to approach small and medium enterprises with long-term financing through intermediary banks,” says Henrik Normann, NIB president and chief executive officer. “Hydroelectric power is a clean, renewable energy source and it therefore fits well under NIB’s mandate.”
HydroWorld.com reported in November 2011 that NIB will loan the Inter-American Development Bank $50 million for hydropower development in Latin America, in addition to $88.9 million given to Sparebanken Vest in October 2011.