The FINANCIAL — NIB and the City of Tartu in Estonia have signed a loan agreement with a tenor of up to 20 years and for a total amount of EUR 20 million to finance municipal investments in road infrastructure and education institutions.
The agreed amount of financing from NIB includes an EUR 8 million investment in debt securities issued by the City of Tartu with a maturity specified in the issue, and a EUR 12 million loan facility at the city’s disposal with a maturity of up to 20 years, according to NIB.
NIB’s financing will help implement a municipal programme of improvements in the city’s road infrastructure and educational infrastructure in 2017–2021. The city will construct streets, car parks in the vicinity of the city’s railway station, as well as pedestrian and cycling roads connecting some residential areas to the station. The educational infrastructure development includes building one new day care centre and reconstructing three existing ones and ten schools. The total amount of investment is expected to reach EUR 45 million.
“Upgraded infrastructure for pedestrians and cyclists, and improved day care centres and schools are good for the environment, as they reduce carbon emissions and noise. And they are also a necessary condition for raising living standards and the competitiveness of the region. NIB highly values the opportunity to help the city of Tartu reach these goals”, says Henrik Normann, NIB President & CEO.
With 97,000 inhabitants, Tartu is Estonia’s second largest city. Since the city is home to the country’s largest university, close to a third of the city’s population are people younger than 30 years old.