Wind turbines in Norway
31 Oct 2022
New Environmental Bond marks a record year of NIB’s green issuance
On 28 October, NIB issued a five-year NOK 1 billion Environmental Bond (NEB). This re-opening of a NEB due October 2027 was a ground-breaking deal for the Bank – NIB’s total Environmental Bond issuance in 2022 has now surpassed EUR 1 billion.
The transaction is a tap of NIB’s first NEB in Norwegian kroner, bringing it to a new total outstanding of NOK 2 billion. With this transaction, NIB has issued Environmental Bonds in both euro and all Scandinavian currencies during this year. The Bank’s total green issuance in 2022 now stands at around EUR 1.1 billion – a record-high amount over a course of one year since NIB started issuing environmental bonds in 2011.
“With a healthy pipeline of loans with high environmental impact, we had an ambition to pass the EUR 1 billion mark of NEB’s issuance for the year when we came into 2022. A lot has changed since then, with Russia’s war in Ukraine and consequential energy crisis bringing volatility to the markets. We are happy that our investors continue to show their trust in NIB during these challenging times, allowing us to deliver on our mandate for environmental financing,” says Jens Hellerup, Head of Funding and Investor Relations at NIB.
“We remain committed to accelerate the green transition in our region, and the ever-increasing interest in our environmental bonds reflect a similar commitment from our investor base. This is a milestone year for us not only because we reached a record-high NEB issuance, but also because we did it by offering our environmental bonds in four different currencies. With NIB Environmental Bonds in EUR, SEK, DKK and NOK, our global and Nordic-Baltic investors are directly channeling their funds to environmentally sound projects close to home”, says Kim Skov Jensen, CFO and Head of Treasury at NIB.
All orders were placed with domestic investors in Norway, among others including SpareBank 1 SR-Bank, Sparebank Møre and SpareBank1 Østlandet.
“Investing in green assets like NIB’s Environmental Bond fits well with SpareBank 1 Østlandet’s journey toward the goal of net-zero emissions in the future,“ says Knut Erik Hammervold, Liquidity Manager SpareBank1 Østlandet.
Danske Bank was the lead manager for this transaction.
“With this tap issue, NIB has done more than 1 billion EUR in Environmental Bonds in 2022. This is a true testament to NIB’s leadership in the Green Bond market through its NEB programme. Danske Bank is proud and honoured to have supported NIB in this journey and it is especially suitable that the milestone is reached through issuance in one of NIB’s core Nordic home markets,“ says Axel Zetterblom, SSA Origination at Danske Bank.
See more information on NIB Environmental Bonds.
| Bond summary terms | |
|---|---|
| Issuer: | Nordic Investment Bank |
| Rating: | Aaa / AAA by Moody’s / S&P |
| Issue amount: | NOK 1 billion |
| Coupon: | 1.625% p.a. |
| Launch date: | 28 October 2022 |
| Payment date: | 04 November 2022 |
| Maturity date: | 20 October 2027 |
| Re-offer price: | 90.461% |
| Re-offer yield: | 3.770% |
| Listing: | Nasdaq Stockholm |
| Lead manager: | Danske Bank |
| ISIN: | XS2400452228 |
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
Jens Hellerup, Senior Director, Head of Funding and Investor Relations, at +358 961 811 401, jens.hellerup@nib.int
Angela Brusas, Director, Funding and Investor Relations, at +358 961 811 403, angela.brusas@nib.int
Alexander Ruf, Director, Funding and Investor Relations, at +358 961 811 402, alexander.ruf@nib.int