ANNOUNCEMENT 18 Feb 2020

In February 2020, the Nordic Investment Bank (NIB) signed a loan agreement to support Lidl Sverige KB's construction of new headquarters, new stores and a logistics centre.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

The Nordic Investment Bank, agreed loans, Sweden. Lidl Sverige KB: https://www.nib.int/what_we_offer/agreed_loans/729/lidl_sverige_kb
The Nordic Investment Bank, Questions & answers: https://www.nib.int/who_we_are/q_a
Lidl: https://www.info.lidl/en-gb/index.html

Inception date: 18 Feb 2020 | Removal date: open ended

State loan

On 18 February 2020, the Nordic Investment Bank (NIB) and Lidl Sverige KB signed a loan agreement having a total value of SEK 500 million (approx. USD 51 million). The maturity of the loan is 10 years. The loan will support the company's construction of a new headquarters and related stores in Stockholm as well as a logistics centre in Örebro and a "Zero-CO2 Lidl store" in Visby, Sweden.

According to the NIB: "The investments contribute to Lidl’s expansion strategy in Sweden. Food products account for 12% of average Swedish household expenditures. Hence, price effects of intensified competition in the national grocery market are expected to pass directly to households’ disposable income. The new warehouse in Örebro is contributing to increasing the capacity of Lidl Sverige’s logistics operations by helping to mitigate operational risks and by diversifying storage operations."

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.

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