NIB issues NOK 1.7 billion global bond
NIB priced yesterday 8 July 2015 a five-year Norwegian kroner bond in global bond format.
The issue has a final maturity on 15 July 2020 and pays an annual coupon of 1.375%. The transaction was priced at 99.698% to give a spread of 63.25 basis points over the Norwegian Government Bond 4.50% May 2019. Denominations are NOK 10,000. J.P. Morgan and Toronto-Dominion Bank acted as joint lead managers and bookrunners on this transaction.
The transaction met with a good response from investors in North America, which accounted for about 65% of the demand. Investors based in Switzerland made up about 4% of the order book, the remainder (31%) was interest from a variety of European countries. Asset managers and insurance companies bought roughly 60% of the transaction, official institutions about 10% and the remainder (30%) was mainly placed into banks with a focus on onward distribution to smaller private investors.
“Against an uncertain backdrop, NIB seized an opportune moment to offer investors an alternative to euros, with the global format ensuring the broadest possible reach. With a gap in the NGB curve in 2020, NIB as a top-rated Nordic issuer offered investors an attractive alternative to the domestic market. Today’s successful transaction proves NIB’s resounding appeal with investors, becoming only the second supranational institution to bring two lines to market this year”, says Laura Quinn, Director of Fixed Income Origination, TD Securities.
“It is testament to both the credit quality of NIB and its profile with international investors that, in challenging market conditions, it could launch and upsize a five-year NOK global benchmark placed in an order book of the highest quality across so many geographical regions”, says Stephen Dirou from J.P. Morgan Local Markets.
“NIB is very satisfied with the outcome of this transaction. Its final size has exceeded our initial expectations. Volatility and incoming news are making new issue markets even more challenging. Still, successful transactions can be made even in challenging circumstances. We have chosen a global format for this transaction to ensure a broad distribution also in North America. NIB is happy to issue in Norwegian kroner, since the bank also disburses loans in this currency”, explains Jens Hellerup, Senior Director, Head of Funding and Investor Relations at NIB.
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Bond Summary Terms |
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| Nordic Investment Bank | |
| Rating: | Aaa/AAA (Moody’s / S&P) |
| Issue amount: | NOK 1.7 billion |
| Issue date: | 8 July 2015 |
| Settlement date: | 15 July 2015 |
| Coupon: | 1.375% payable annually |
| Maturity date: | 20 March 2020 |
| Reoffer spread: | NGB 4.50% 05/2019 +63.25bp |
| Reoffer price: | 99.698% |
| Reoffer yield: | 1.438% annual |
| Format: | Global |
| Joint Lead Managers: | J.P. Morgan, TD Securities |
| ISIN: | US65562QAY17 |
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, with the leading rating agencies Standard & Poor’s and Moody’s.
For further information, please contact
Mr Jens Hellerup, Head of Funding and Investor Relations, at +358 961 811 401,