KfW IPEX-Bank funds Sustainable Rail Expansion in Norway
In a significant stride towards sustainable transportation, KfW IPEX-Bank has announced the provision of a green loan facility totalling NOK 1,148 million (around EUR 100 million) to the Norwegian state-owned enterprise, Bane NOR Eiendom. This strategic funding is earmarked for the enhancement of railway infrastructure that forms the backbone of Norway’s public transport network.
Bane NOR Eiendom, a pivotal entity within the Norwegian Ministry of Transport, oversees the development and management of various railway-supportive structures, including stations and maintenance facilities. The allocated green loan, compliant with Bane NOR’s Green Finance Framework and the Green Loan Principles’ Clean Transportation category, will be instrumental in financing infrastructure projects designed to bolster the efficiency and capacity of railway services.
The loan, to be disbursed in Norwegian kroner, is divided into two tranches with maturities spanning 7 and 9.5 years. This financial injection is set to revolutionize the current railway amenities by facilitating the extension and modernization of maintenance workshops. The upgraded facilities will accommodate passenger trains exceeding 220 meters, significantly optimizing the maintenance cycle.
Andreas Ufer, a prominent member of KfW IPEX-Bank’s Management Board, highlighted the bank’s commitment to promoting carbon-neutral transport solutions in Norway.
“By funding the expansion of Bane NOR Eiendom’s operations, we take pride in fostering a CO2-free public transportation system,” stated Ufer.
The move by KfW IPEX-Bank is a testament to its dedication to the decarbonization of mobility and transportation sectors. It reflects a broader commitment to the transition towards a CO2 neutral society and economy, thus aligning with the objectives set forth in the Paris Agreement.
Bane NOR Eiendom stands at the forefront of Norway’s quest to create more sustainable urban transit hubs. By integrating commercial and residential projects within the vicinity of these hubs, the company aims to make eco-friendly transportation options more attractive, drawing the public away from reliance on private vehicles.
KfW IPEX-Bank, a member of the KfW Group, is renowned for facilitating project and export finance, driving forward the German and European industrial prowess on the global stage. It pioneers in securing financing for exports, infrastructure projects, and initiatives that address environmental challenges, thereby propelling the society towards sustainable development in economic, environmental, and social dimensions.
With this green loan, the bank continues to solidify its role as a catalyst for transformative technologies and sustainable future practices, striving for a net-zero emissions portfolio by the year 2050.
