NIB returns to the Kangaroo market with record-breaking AUD 600 million 5-year benchmark bond
- The Nordic Investment Bank (NIB) made a strong return to the Kangaroo market with its largest ever Kangaroo transaction, upsized to AUD 600 million on the back of robust investor demand.
- The deal achieved the tightest spread to swap for a new 5-year SSA transaction in 2025, tightening by 2 basis points during the bookbuild.
- The transaction attracted more than 30 high-quality global investors, led by central banks and official institutions taking the largest share of allocations. Geographically, it was a good mix of international and domestic investors.
The bond carries a semi-annual coupon of 4.05% and was priced at 99.969%, yielding 4.057%. Settlement will take place on 11 September 2025, with maturity on 11 September 2030. The joint lead managers were J.P. Morgan (B&D), Nomura, and RBC Capital Markets.
Jens Hellerup, Head of Funding & Investor Relations at NIB, says:
“We are delighted to return to the Kangaroo market after two years of absence. Following the recent successful Kangaroo trades from our peers, we saw a great opportunity to re-enter the market. Glad to see strong commitment from both domestic and international investors, which secured the largest order book in NIB’s nearly 20 years of presence in the Kangaroo market. The Kangaroo market offers great diversification. Although the orderbook would have allowed for a larger deal, we were unfortunately restricted on size.”
Harald Eikeland, Director, RBC Capital Markets, says:
“NIB has undoubtedly made a triumphant return to the Kangaroo market with this exceptional new 5-year benchmark issuance. The remarkable breadth of investor demand it garnered, coupled with the ability to tighten pricing by 2 basis points during the bookbuild process, stands as a testament to NIB’s strong reputation and recognition both within Australia and on the global stage.”
Tim Pinchen, Head of AUD Syndicate, J.P.Morgan, says:
“Congratulations to the NIB team for their successful AUD 600 million 5-year Kangaroo transaction! The transaction sets a record for NIB’s largest ever Kangaroo deal whilst also achieving the tightest spread for a new 5-year SSA transaction in 2025. The heavily oversubscribed orderbook comprised a diverse mix of central banks, bank treasuries and domestic Australian investors demonstrating the strong demand for the NIB credit. J.P. Morgan is delighted to have been involved.”
Mark Yeomans, Managing Director, Nomura, says:
“The Nordic Investment Bank (NIB) Kangaroo transaction marked a triumphant return to the market, with the new 5-year representing their largest ever transaction. The deal was circa 3 times oversubscribed, very granular and garnered a globally diverse set of investors. The investor interest characterises the safe haven appeal of NIB and the excellent credit standing of the Bank, which focuses on productivity gains and environmental benefits within the Nordic and Baltic region. Nomura is proud to have been a part of this transaction and would like to congratulate the NIB team on their success.”
Proceeds from the transaction will be used in line with NIB’s mandate to finance projects that improve productivity and benefit the environment.
Bond summary terms
| Issuer | Nordic Investment Bank (NIB) |
| Rating | Aaa (Moody’s), stable / AAA (S&P), stable |
| Format | Kangaroo Bond (AUD Fixed Rate Senior Notes) |
| Issue amount | AUD 600 million |
| Settlement date | 11 September 2025 (T+5) |
| Maturity date | 11 September 2030 |
| Coupon | 4.05% semi-annual (RBA Bond Basis) |
| Issue price | 99.969% |
| Reoffer yield | 4.057% |
| Spread | ACGB 2.50% 21 May 2030 +41.7bps / ASW +45bps / EFP +55.7bps |
| ISIN | AU3CB0325827 |
| Joint lead managers | J.P. Morgan (B&D), Nomura, 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