Norwegian Air will receive a boost to its balance sheet through a deal with a bank in Norway.

The budget carrier is to be paid 150 million Norwegian krone though a licencing agreement with Norwegian Finans Holding (NOFI).

This will enable the bank to use the airline’s brand and logo in Europe outside the Nordics region for five years in an extension of collaboration involving the Norwegian reward loyalty scheme.

A licence fee of NOK 30 million a year will then be paid, subject to renegotiation after ten years.

Other financial arrangements will see the airline receive a further cash payment of NOK 28 million.

The total proceeds will be received during the second quarter of the year.

“This agreement strengthens Norwegian’s shareholders’ opportunity to take part in NOFI’s international expansion,” the carrier’s chief financial officer Geir Karlsen said.

“The co-operation between the airline and the bank has been a great success in the Nordic region through Norwegian Reward, and I have great faith that the bank will also succeed well in new markets in Europe where the airline has already been established.”

The bank’s CEO Tine Wollebekk added: “We will continue the good co-operation with NAS [Norwegian Air Shuttle] and the loyalty programme Norwegian Reward about marketing and sales, at the same time as the established Nordic banking business becomes part of the expanded focus in Europe.

“We believe that the co-operation with Norwegian Reward in Europe outside the Nordics will be as successful as it has been in the Nordic countries, where the bank has close to 1.6 million customers, high profitability and low losses.”