NIB’s funding plan for 2017 is EUR 4.5 billion. By early March 2017, the Bank had raised approximately EUR 2.3 billion in new funding through 28 new issues.
In line with previous years, the Bank’s strategy is to complete one to three global benchmark transactions in US dollars and/or euros, complemented by other public and private issues in order to maintain a diversified portfolio of currencies and a global investor base.
“We have been a frequent issuer of global benchmark transactions since 2002 and have a track record of successful and well-performing issues in this market”, says Jens Hellerup, Head of Funding and Investor Relations at NIB.
The Bank’s first global benchmark of the year was issued on 24 January. The five-year, USD 1.25 billion issue, which offered a spread equivalent to 17 basis points over mid swaps, is still one of the tightest-priced five-year issues brought to the market by the sovereign, supranational and agency sector lately. See news and press releases.
Another aim for the Bank is to continue issuing NIB Environmental Bonds (NEBs). Since the establishment of its NEB framework, the Bank has issued a total of eleven bonds financing projects with a positive environmental impact.
“Last year, we successfully brought to the market three new NIB Environmental Bonds of a total equivalent to EUR 763 million. The continued oversubscribed transaction books of the NEBs show that this product is very attractive to investors, and we foresee the Bank issuing NEBs also during 2017”, Mr Hellerup says.
“This product allows NIB to communicate the Bank’s environmental mandate and long history of financing environmental projects. Further, it provides our funding with a diversified investor base.”
For more information on the NIB Environmental Bond framework, issues and projects financed, see NIB Environmental Bonds.
During the first months of 2017, NIB has, in addition to the USD global benchmark, issued four other public transactions, consisting of one GBP 250 million issue and three issues in the Kangaroo market of a total of AUD 145 million.
In addition, 23 private placements in ARS, BRL EUR, INR, NOK, SEK, TRY and USD have been issued. For detailed information on new issues, please see funding transactions.
“NIB always aims in its funding strategy to achieve a well-diversified investor base and is therefore glad to respond to investor demands regarding currencies, structures and documentation”, says Mr Hellerup.
Senior Director, Head of Funding and Investor Relations at NIB
Phone: +358 961 811 401
In 2016, NIB increased its new lending to EUR 4.4 billion. While corporate investment remained subdued, the demand for long-term loans saw strong growth, particularly in the public sector.
15 Mar 2017
The report presents the results of the NIB Environmental Bond programme in 2016. It is available in print and online.
27 Feb 2017
On 24 January, NIB priced a new 5-year global USD 1.25 billion bond, the Bank’s first public benchmark of 2017. The final high-quality order book was oversubscribed and with over 50 investors participating.
25 Jan 2017