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Isavia and NIB Sign Loan Agreement for Keflavik Airport Expansion

Isavia and NIB Sign Loan Agreement for Keflavik Airport Expansion

Isavia ohf. and Nordic Investment Bank (NIB) have signed a 10-year loan agreement of EUR 50 million to finance the construction of the Keflavik International Airport expansion, which involves the construction of the new East Wing.

The new terminal construction will add 23,000 m2 to the main terminal building, thereby increasing the total terminal area by 30%. The new building is expected to achieve an Excellent rating according to the international BREEAM classification. It will partially be ready for use before the end of 2023 and fully ready in 2024. The loan agreement was signed on Tuesday May 16, 2023. The agreement was signed by Isavia CEO Sveinbjörn Indriðason and Stefán Jón Friðriksson, Senior Banker at NIB.

Isavia CEO Sveinbjörn Indriðason says that the company has set itself ambitious but also well-defined and clear goals in environmental matters. It follows a detailed action plan to implement Isavia´s sustainability policy. "The Airport expansion is certified by BREEAM, an independent environmental certification system which ensures that restraint and sustainability will be the guiding principle in our construction. The aim is to reduce the carbon footprint of the construction, reduce water and electricity consumption and maintain green areas and biodiversity in design and implementation.”

Mr. Indriðason says that there are many projects that are still in the works and it is important to get NIB to the table. “We are adding to the terminal building and expanding our taxiways– all to improve the service to the users of Keflavik Airport.”

"The loan agreement with Isavia demonstrates the significance of long-term investments in the aviation sector in supporting economic growth and connectivity. Keflavík International Airport is a critical hub for Iceland's tourism industry and is expected to play a pivotal role in the country's economy,” says André Küüsvek, President and CEO of NIB.

NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden. The Bank finances private and public projects in and outside the member countries.