NIB breaks records with USD 1 billion 3-year global benchmark bond
- NIB sets record by achieving the tightest ever spread to US Treasuries for a USD supranational benchmark, pricing at just 2.5bps over the 3-year Treasury.
- The transaction drew exceptional demand of more than USD 4.4 billion from over 100 investors, over four times oversubscribed—the highest ratio ever for an NIB USD benchmark.
On 21 August 2025, the Nordic Investment Bank (NIB) priced a USD 1.0 billion 3-year global benchmark bond. This is NIB’s second USD benchmark issuance of the year, following five public transactions across GBP, EUR, and USD earlier in 2025.
The new issue underscores NIB’s strong standing in global capital markets, setting two records: the tightest ever spread to US Treasuries for a USD supranational, sovereign, and agency (SSA) syndicated benchmark, and the largest oversubscription ratio in NIB’s USD issuance history. The orderbook closed at over USD 4.4 billion, enabling final pricing to tighten by 4 basis points from initial guidance.
Kim Skov Jensen, CFO & Vice President at NIB at NIB, says:
” I am very happy with the outcome of this transaction. The team identified an optimal window right after the summer break to issue this three-year bond. Despite the fact that the additional yield offered over the US Treasury bond was the smallest ever for a supranational bond, investor demand was remarkably strong. This reflects the trust investors place in NIB’s name, backed by our solid ownership and clear mandate. Additionally, it’s possible that investors viewed this as an opportunity for risk diversification, which further supported the successful placement.”
Jens Hellerup, Head of Funding & Investor Relations at NIB, says:
” We were aware that the public market would open this week, but accessing it this early was not part of our initial plan. However, after observing the positive tone in the USD market through trades by our peers and noting the absence of competing supply, we saw a strong opportunity to proceed. We successfully completed the transaction just ahead of the Jackson Hole Summit, which begins later on Thursday. Given the limited supply in the three-year segment of the curve, we identified a clear window to act. This strategy proved effective, as we were able to secure one of the largest order books for a USD benchmark bond at a relatively tight spread—not only against SOFR but also compared to US Treasuries.”
The bond carries a semi-annual coupon of 3.750% and was priced at 99.992%, yielding 3.753%. Settlement will take place on 28 August 2025, with maturity on 28 August 2028. The joint lead managers were Daiwa Capital Markets, HSBC, J.P. Morgan, and RBC Capital Markets. Read the joint press release here.
Tina Nguyen, Executive Director, SSA DCM, at J.P. Morgan, says:
“ J.P. Morgan is delighted to be involved in NIB’s record-breaking USD Global transaction. The issuer reacted swiftly to a strong issuance window to garner a 4.4x oversubscribed book, consequently pricing at an all-time tight to US Treasuries, or only 2.5bps over the CT3. Many congratulations to the NIB funding team!”
Stuart McGregor, Managing Director, at RBC Capital Markets, says:
” Hats off to the NIB team for their decisiveness and agility in capitalizing on favourable dynamics in the USD market. Their sustained effort in investor outreach over many years has truly paid off, as evidenced by the participation of over 100 investors in this deal, achieved at some of the tightest spreads seen in recent history.”
Investor demand was both broad and high quality. Geographically, allocations were dominated by EMEA with 48%, followed by the Americas with 33% and Asia with 19%. By investor type, central banks and official institutions (CB/OIs) took the largest share at 64%, followed by banks with 27%, asset managers with 8%, and others with 1%.
Proceeds from the transaction will be used in line with NIB’s mandate to finance projects that improve productivity and benefit the environment.
For more information on NIB’s funding programme, click here.
Bond summary terms
| Issuer | Nordic Investment Bank (NIB) |
| Rating | Aaa (Moody’s), stable / AAA (S&P), stable |
| Format | Global, SEC Registered, Senior Unsecured |
| Issue amount | USD 1.0 billion |
| Settlement date | 28 August 2025 (T+5) |
| Maturity date | 28 August 2028 |
| Coupon | 3.750%, Semi-Annual, Fixed |
| Issue price | 99.992% |
| Reoffer yield | 3.753% (Semi-Annual) |
| Spread | CT3 +2.5bps / MS +30bps |
| Listing | Luxembourg Stock Exchange’s Regulated Market |
| Joint lead managers | Daiwa Capital Markets, HSBC, J.P. Morgan, RBC Capital Markets |
NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, from leading rating agencies Standard & Poor’s and Moody’s.
For further information, please contact:
Jens Hellerup, Head of Funding & Investor Relations, +358 9618 11401, jens.hellerup@nib.int
Angela Brusas, Director, Funding & Investor Relations, +358 9618 11403, angela.brusas@nib.int
Alexander Ruf, Director, Funding & Investor Relations, +358 9618 11402, alexander.ruf@nib.int