NIB issues 5-year USD global bond, second in 2016

On 26 July 2016, NIB priced a new five-year global USD 1 billion benchmark. This is NIB’s second USD benchmark transaction this year and it takes the to-date figure of the Bank’s annual funding to EUR 4.3 billion.

Given the strong demand, the order book exceeded USD 2 billion shortly after the announcement on Tuesday morning. The high quality of the demand and the capped deal size of USD 1 billion allowed setting the spread at MS + 17 bps.

The transaction enjoyed a broad distribution across both geographies and investor types with almost 50 investors participating. The Americas accounts led the way taking 52% of the final allocation. Asia accounted for 25% and EMEA for 23%.

In terms of investor type, bank and treasury investors with 56%, central banks and official institutions with 27% and asset managers and fund managers with 15% dominated the final allocation.

“NIB has responded exceptionally well to market conditions here and provided exactly the right product for this market. As a result, they have been rewarded with the tightest SSA (sovereign, supranational and agencies) 5-year to swaps since their own 5-year benchmark in September last year that has a fantastically high quality and well diversified orderbook”, says Adrien de Naurois, Managing Director, SSA Syndicate at Bank of America Merrill Lynch.

“With a potentially challenging autumn ahead of us, we wanted to take advantage of a strong market, before everything slows down for the summer break. The recent widening of the swap spread in USD placed us in untouched price territory, but with an order book of over USD 2 billion we are confident that we will see performance in the bond, which is one of the goals we have with this transaction. We are again very happy to see the continued support international investors show towards NIB”, says Jens Hellerup, Head of Funding and Investor Relations at NIB.

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:	USD 1 billion
Issue date:	26 July 2016
Payment date:	2 August 2016
Coupon:	1.125% payable semi-annually
Maturity date:	2 August 2021
Reoffer spread:	Mid swaps + 17 bps, CT5 + 20.48bps
Format:	Global
Joint lead managers:	Bank of America Merrill Lynch, Citi, HSBC, 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, 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, mixIt(‘jens.helle’,’rup’,’nib.i’,’nt’,”,’1469686148650-1′);jens.hellerup (at) nib.int