ANNOUNCEMENT 04 Apr 2019

In April 2019, the Nordic Investment Bank (NIB) signed a loan agreement with Orkla ASA. The loan will support the construction of the company's new headquarters and its investment programme "Project One".

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

The Nordic Investment Bank, agreed loans, Norway. Orkla ASA: https://www.nib.int/what_we_offer/agreed_loans/677/orkla_asa
The Nordic Investment Bank, Questions & answers: https://www.nib.int/who_we_are/q_a
Orkla ASA: https://www.orkla.com/about-us/
Orkla’s brands: https://www.orkla.com/orklabrands/

Inception date: 04 Apr 2019 | Removal date: open ended

State loan

On 4 April 2019, the Nordic Investment Bank (NIB) and Orkla ASA signed a loan agreement having a total value of EUR 90 million (approx. USD 101 million). The loan will support the construction of the company's new headquarters as well as its investment programme "Project One". The investment programme aims at creating a single "enterprise resource planning solution". The maturity of the loan is 10 years. 

According to the NIB, the supported investment project: "seeks to strengthen (ed. the) company’s competitiveness through enabling more effective work procedures across the organization by providing a common platform for sharing information, products and knowledge."

Orkla ASA has its headquarters in Norway with its main markets being in the Nordic and Baltic region whilst also being present in other countries around the world. The company is a supplier of branded consumer goods in the area of food, snacks, cleaning products, food ingredients and care products. According to the company, the Group hired around 18,500 employees and had a turnover of NOK 41 billion in 2018.

The NIB is an international financing bank and is jointly owned by Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The bank provides financing to private and public projects mainly located in the eight countries at attractive conditions. The eligibility criteria of NIB financing is that: "All projects financed by NIB should improve competitiveness and/or the environment, in accordance with NIB's mandate and eligibility criteria. Furthermore, outside the membership area, projects financed by NIB should be of mutual interest to the country of the borrower and the member countries." 

A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the investment support granted here is discriminatory.