New USD 1bn benchmark priced

On 20 November, NIB priced a 3-year USD 1 billion benchmark. Due 15 December 2011, the deal pays a coupon of 2.375% and has a reoffer price of 99.766. The joint lead managers were Citi, HSBC and JP Morgan. The pay day is set at 28 November.

This is the third USD global benchmark transaction carried out by the Bank in 2008. The previous deals were USD 1.25 billion 3-year and a USD 1 billion 5-year. Investors responded quickly, with the orderbook fully subscribed before the end of the London session and total orders reaching USD 1.25 billion.

“This transaction is very significant, as it’s re-opening the USD benchmark market, which has not seen a syndicated transaction in more than four weeks. NIB responds to recent buying activity in the Sov/Supra/Agency secondary market, which led to improving bid-offer spreads,” says Kari Kukka, Head of Funding at NIB.

See also Citi, HSBC, JPMorgan press points.