NIB finances nursing home and healthcare facilities in Reykjavik, Iceland

• NIB has signed an ISK 4,375 million (EUR 29 million) loan with the Icelandic real estate company Reitir hf.
• The 10-year loan will co-finance the conversion of two former office buildings into a nursing home and health care facilities in Reykjavik.
• The total project costs are ISK 8,750 million.

The Icelandic public health care system faces challenges including an ageing population, limited hospital capacity, workforce shortages and long waiting times for elective and specialist care. At the same time, Iceland has fewer long-term care beds per 1,000 inhabitants aged 65 or above compared to other Nordic countries. Estimates suggest that the number of available beds will need to approximately double by 2040 to adequately meet future needs.

The converted nursing home will have capacity for 87 residents and is scheduled to start operations during the first half of 2027. It aims to increase nursing home capacity, and it will be integrated to healthcare and social services to free up space in hospitals, resulting in cost savings for the public health care system.

The new health care facilities will expand surgical capacity by approximately 50% compared with the clinic's previous capacity by adding two operating rooms, two procedure rooms for minor surgeries, an expanded inpatient ward, and 28 offices for medical staff. The facilities, run by a privately owned healthcare clinic, will provide quicker access to non-urgent surgeries and specialist appointments and help ease pressure on the public health care system.

"In response to the challenges facing Iceland's health care system, these investments will enable high-quality services for the Icelandic people. In addition, ensuring more efficient and timely access to nursing care will support municipalities in maintaining a positive fiscal balance," says André Küüsvek, NIB President and CEO.

"Drawing on decades of experience in the real estate sector, Reitir is expanding its operations and strengthening its role as a developer with a clear focus on building socially useful infrastructure. The two projects demonstrate how existing buildings can be effectively repurposed to meet demographic-driven demand for nursing homes and health care facilities in Iceland. NIB's financing supports our ambition to deliver high-quality, sustainable facilities for public and private health care providers," says Guðni Aðalsteinsson, CEO of Reitir.

Reitir hf. is an Icelandic real estate company listed on the Nasdaq Iceland stock exchange since 2015. The company owns, leases and manages a diversified portfolio of more than 490,000 square meters of commercial properties, primarily located in the capital region. Its portfolio spans retail, offices, hotels, industrial, and other commercial uses, serving over 500 customers in the private and public sectors. With more than 1,000 apartments and 130,000 square metres under development, the company is expanding its activities in both residential and commercial real estate development.

NIB is the international financial institution of Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden. The Bank finances projects that improve productivity and benefit the environment of the Nordic-Baltic region. The Bank is headquartered in Helsinki with a regional hub in Riga. NIB has the highest possible credit rating, AAA/Aaa, with S&P Global Ratings and Moody's.

Contact:

Daniel Kangasmaa, Senior Banker, +358 10 618 0304, [email protected]

Tommy Hellström, Associate Communications Officer, +358 10 618 0214, [email protected]