NIB prices 5-year USD 1bn global issue

On 20 January 2011, NIB priced a new 5-year global USD 1 billion benchmark transaction. This is the Bank’s first public benchmark this year. The issue has a final maturity of 15 March 2016, pays a coupon of 2.25% and has a fixed price reoffer of 99.613%, to give a spread of mid-swaps +6 basis points. Deutsche Bank, HSBC and J.P. Morgan were the lead managers for the transaction.

“We are responding to the current positive market conditions. The long five-year maturity was selected in response to large investor demand in that tenor,” says Jens Hellerup, Head of Funding and Investior Relations at NIB.

The high-quality and relatively spread-insensitive demand from Asia, Middle East, Europe and the US market drove the book building, crossing the target size of USD 1 billion before US opening. The final book reached USD 1.3 billion, comprising around 50 investors. Central Banks and Official Institutions accounted for 60%. All major regions were well represented in the book with EMEA accounting for 54%, Americas 31% and Asia 15%.

NIB’s funding programme for 2011 totals EUR 3.5 billion (USD 4.6 billion).

See also the joint press release.

For more information, please contact
Jens Hellerup, Director, Head of Funding and Investor Relations
Tel. +358 9 618 11401
jens.hellerup@nib.int