NIB launches 8-year EUR 500m environmental benchmark
On Friday, 3 June, NIB launched an eight-year EUR 500 million NIB Environmental Bond transaction (NEB) to support NIB’s lending to selected environmental projects. In accordance with NIB’s environmental bond framework the use of proceeds from this transaction will be allocated to a separate account for onward disbursement of loans to new environmental projects. NIB does not refinance existing project with NEB proceeds.
This is the second NIB Environmental Bond benchmark in EUR. The transaction attracted strong interest from dedicated green investors and committed mainstream accounts, such as AP4, Alecta, Mirova, FMO and APG. The order book exceeded EUR 750 million at a price of midswaps minus 17 basis points.
“We have invested in the NIB green bond since we see good investment potential and benefits of diversification in to climate friendly investments”, says Peter Castrén, Head of Fixed Income at Local Tapiola Asset Management Ltd (Finland).
“We are very pleased to contribute to the mission of NIB and at the same time getting a step closer to our own target regarding green bonds”, says Dennis van der Putten, Head of Responsible Investing at Actiam (the Netherlands).
“The new NIB Green Bond fit well into AP2 sustainable investment strategy. We appreciate NIB both as a high quality issuer and for its commitment to finance projects that contribute to a transmission towards a low-carbon economy”, says Lars Lindblom, Portfolio Manager Fixed Income at AP2 (Sweden).
“NIB is very satisfied with the outcome of the new benchmark and especially excited to see the variety of green investors who are supporting NIB’s Environmental Bond framework. Since the supply of green bonds from the supranational sector was not abundant in recent weeks, a good window for issuance was available for us. The deal emphasises NIB’s strong presence in the green bond market”, says Jens Hellerup, Head of Funding & Investor relations at NIB.
Read more:
See a joint press release on the bond transaction PDF here.
| Bond Summary Terms | |
| Nordic Investment Bank | |
| Rating: | Aaa / AAA (Moody’s / S&P) |
| Issue amount: | EUR 500 billion |
| Denomination: | EUR 1,000 / EUR 1,000 |
| Settlement date: | 10 June 2016 |
| Coupon: | 0.125% |
| Maturity date: | 10 June 2024 |
| Reoffer spread: | Mid swaps – 17 bps and 28.9 bps over benchmark DBR 1.500% 05/24 |
| Issue price: | 99.865% |
| Issue yield: | 1.142% |
| Format: | RegS |
| Listing | London Stock Exchange |
| Joint lead managers: | Crédit Agricole CIB, Goldman Sachs International, SEB |
| ISIN: | XS1431730388 |
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
Angela Brusas, Senior Funding Manager, at +358 961 811 403
Alexander Ruf, Senior Funding Manager, at +358 961 811 402