ANNOUNCEMENT 27 Mar 2019
In March 2019, the Nordic Investment Bank (NIB) signed a loan agreement with Keitele Timber Oy to support its investments in certain facilities in connection with its wood proceeding activities.
NUMBER OF INTERVENTIONS
The Nordic Investment Bank, agreed loans, Finland. Keitele Timber Oy: https://www.nib.int/what_we_offer/agreed_loans/674/keitele_timber_oy
The Nordic Investment Bank, press release of 28 March 2019, NIB funds processing facilities for sustainable wood in Finland: https://www.nib.int/who_we_are/news_and_media/news_press_releases/3234/nib_funds_processing_facilities_for_sustainable_wood_in_finland
The Nordic Investment Bank, Questions & answers: https://www.nib.int/who_we_are/q_a
Keitele Group: https://www.keitelegroup.fi/yritys
On 27 March 2019, the Nordic Investment Bank (NIB) and Keitele Timber Oy signed a loan agreement having a total value of EUR 15 million (approx. USD 17 million). The loan will support the company's investments in new goods in connection with its wood processing activities including machines and certain dryers as well as a pallet factory. 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."
Keitele Timber Oy runs three sawmills and is a subsidiary of Keitele Group. The Group produces goods of wood mainly for the construction sector as well as other consumer goods of wood. According to the NIB: "The main product from wood processing is glued laminated timber (glulam), which can be used in construction as an alternative to steel or concrete." The Group has its headquarters in Finland providing its goods to more than 40 countries worldwide.
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.