Nordic Investment Bank – Annual Report 2010
- This is NIB
- Mandate, Mission and Impact
- Lending
- Treasury
- Corporate Governance
- Financial Report
- Report of the Board of Directors
- Proposal by the Board of Directors to the Board of Governors
- Statement of comprehensive income
- Statement of financial position
- Changes in equity
- Cash flow statement
- Notes to the financial statements
- 1. Segment information
- 2. Interest income and interest expense
- 3. Commission income and fees received
- 4. Net profit/loss on financial operations
- 5. General administrative expenses
- 6. Impairment of loans
- 7. Financial placements
- 8. Loans outstanding and guarantee commitments
- 9. Intangible assets, tangible assets (property and equipment)
- 10. Depreciation
- 11. Other assets
- 12. Debts evidenced by certificates and swaps
- 13. Other liabilities
- 14. Authorised capital—paid-in capital
- 15. Statutory reserve and credit risk funds
- 16. Collateral and commitments
- 17. Fair value of financial instruments
- 18. Maturity profile
- 19. Interest rate risk
- 20. Currency risk
- 21. Average statement of financial position
- 22. Related party disclosures
- 23. Cash flow statement
- 24. Exchange rates
- 25. Post-balance sheet events
- Auditors’ reports
Material bank
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Capital structure
As of 31 December 2010, NIB's authorised capital was EUR 4,141.9 million. The paid-in capital at the end of the year amounted to EUR 418.6 million. The remainder of NIB's authorised capital consists of callable capital, which is subject to call if the Bank's Board of Directors deems it necessary for the fulfilment of the Bank's debt obligations.
In June 2010, the Board of Governors decided to increase the Bank's authorised capital by EUR 2 billion to EUR 6,142 million. The capital increase entered into force as of 16 February 2011 after all member countries had completed their national procedures. The capital increase has been allocated to the callable portion of the authorised capital stock.
The Bank's Ordinary Lending ceiling corresponds to 250% of the authorised capital and accumulated general reserves. After the appropriation of profits from the financial year 2010 in accordance with the proposal made by the Board of Directors and the capital increase, the Ordinary Lending ceiling amounts to EUR 18,980 million.
In addition to Ordinary Lending, NIB has two active special lending facilities. The Project Investment Loan facility (PIL) amounts to EUR 4,000 million. The member countries guarantee the PIL loans up to a total amount of EUR 1,800 million. The Bank, however, will assume 100% of any losses incurred under an individual PIL loan, up to the amount available at any given time in the Special Credit Risk Fund for PIL. Only thereafter would the Bank be able to call the member countries' guarantees. The second special facility, the Environmental Investment Loan facility (MIL), amounts to EUR 300 million. The Bank's member countries guarantee up to 100% of loans outstanding under MIL.
NIB's member countries have subscribed to its authorised capital and guaranteed the special loan facilities in proportion to their gross national income. The countries' share of the authorised capital after the capital increase is shown on the map of member countries.
A more detailed presentation of the loan facilities, the guarantee structure and the guarantee distribution is provided in Note 8 in the Financial Report.
In view of the Bank's strong capital base, the quality of its assets, and its status as an international financial institution, the leading international rating agencies, Standard & Poor's and Moody's, have accorded NIB the highest possible credit rating, AAA/Aaa, for long-term obligations and A-1+/P-1, respectively, for short-term obligations. NIB obtained the highest possible credit rating in 1982. Since then, the Bank has continuously maintained this credit rating.
