15 Sep 2021
NIB issues 3-year USD 1 billion global benchmark
On 14 September, NIB priced a 3-year USD 1 billion benchmark, our second USD benchmark of this year. The transaction attracted strong support from over 50 global investors, with the orderbook closing in excess of USD 1.9 billion.
“We managed to take advantage of a strong primary market backdrop, and the transaction attracted high quality support from the outset. At +6.8bps over the on-the-run 3-year UST, the new issue priced at the tightest 3-year spread vs. UST in the SSA sector for this year”, says Jens Hellerup, Head of Funding and Investor Relations at NIB.
The transaction was broadly distributed across geographies and investor types. Central banks and official institutions made up the lion’s share with 67%, followed by bank treasuries and fund managers taking 16% each. Most demand originated from the Americas with 45%, followed by APAC with 38% and the EMEA region with 17%.
“This USD benchmark was announced during a favourable execution window and we were pleased to see such strong, diverse demand. The issue follows a 5-year USD 1.25 billion benchmark we priced in January. With this transaction, we have now completed EUR 6 billion of our expected EUR 6.5-7.5 billion funding programme for the year”, Mr Hellerup says.
“On this transaction, the Nordic Investment Bank demonstrated once again its strong sponsorship from the global investor base, particularly central banks and official institutions. In a busy market backdrop, they succeeded in securing over 65% of support from this investor segment. This US dollar benchmark has broken many recent records, and has only been achievable because of the proactive investor work and insight of the funding team at NIB, RBC was privileged to be part of this trade”, says Stuart McGregor, Head of European SSA DCM at RBC.
Joint lead managers for this global transaction are Citi, Crédit Agricole, CIB, RBC Capital Markets, TD Securities. See a joint press release on the bond transaction (PDF).
Bond summary terms
|Issuer:||Nordic Investment Bank|
|Rating:||Aaa / AAA by Moody’s / S&P|
|Issue amount:||USD 1 billion|
|Launch date:||14 Sept 2021|
|Payment date:||21 Sept 2021|
|Maturity date:||20 Sept 2024|
|Re-offer spread:||MS -5bps|
|Joint lead managers:||Citi, Crédit Agricole, CIB, RBC Capital Markets, TD Securities|
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, Senior Director, Head of Funding and Investor Relations, at +358 961 811 401, email@example.com
Ms Angela Brusas, Director, Funding and Investor Relations, at +358 961 811 403, firstname.lastname@example.org
Mr Alexander Ruf, Director, Funding and Investor Relations, at +358 961 811 402, email@example.com