24 Jan 2019

NIB issues first Nordic–Baltic Blue Bond

On 24 January 2019, NIB traded its first Nordic–Baltic Blue Bond. The five-year SEK 2 billion bond is launched under the NIB Environmental Bond Framework and will focus on investments within water resource management and protection.

NIB’s inaugural Nordic–Baltic Blue Bond is targeted at sustainable investors. Eligible projects include wastewater treatment, prevention of water pollution and water-related climate change adaptation.

The Nordic–Baltic region is rich in water resources, but human activity and new types of pollution are putting increasing pressure on water environments.

The Baltic Sea has particularly been affected by eutrophication due to the high levels of nitrogen and phosphorus discharge that result in excessive plant and algae growth. Therefore, investments in wastewater treatment will be a necessity for sustainable urban development in the future.

“NIB has long been playing an important role in the recovery of the Baltic Sea. During the past fifteen years, the Bank has financed numerous projects with positive effects on marine life and the quality of surface and groundwater”, says Lars Eibeholm, Head of Treasury at NIB.

“NIB has been active in the green bond market since 2011 and is the largest issuer of green bonds in the Nordic region. The Nordic–Baltic Blue Bond is specifically aimed at investors that are conscious of the challenges facing the region’s water resources, especially those affecting the Baltic Sea”, says Mr Eibeholm. “It gives investors the opportunity to directly target water-related projects that address these challenges.”

“SEB acted as a lead manager for this SEK 2 billion transaction that supports water projects around the Baltic Sea. The bond, which was oversubscribed more than two times, will allow the financial sector to get a better understanding of the challenges of the Baltic Seas ecosystems and the solutions to address these challenges”, says Christopher Flensborg, Head of Climate & Sustainable Finance in Large Corporates & Financial Institutions at SEB.

One of the projects that will receive financing from the Nordic–Baltic Blue Bond is the Nya Slussen project in Stockholm. NIB is not only financing clean transport solutions at the Slussen traffic hub, but also the redevelopment of the Slussen water locks. The expansion of the water locks will increase the drainage capacity and accommodate higher floodgates by adding two larger water channels beside the locks.

The Nya Slussen redevelopment project is a crucial flooding mitigation measure that will allow Stockholm and the Mälar region to prepare for the effects of rising sea levels and more extreme weather conditions in the future. For more on the project, visit NIB’s website.

Read more about NIB’s view on the protection of the Baltic Sea here.

Bond Summary
Nordic Investment Bank
Rating: Aaa / AAA (Moody’s / S&P)
Issue amount: SEK 2 billion
Denomination: SEK 10,000
Settlement date: 1.2.2019
Coupon: 0.375%
Maturity date: 1.2.2024
Re-offer spread to MS: -2bps
Re-offer price: 99.664%
Re-offer yield: 0.443%
Format: EMTN
Listing: Nasdaq Stockholm
Sole lead manager: SEB
ISIN: XS1943607975

See a joint press release on the bond transaction here (PDF)

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, Head of Funding and Investor Relations, at +358 961 811 401, jens.hellerup@nib.int

Mr Luca De Lorenzo, Head of Sustainability and Mandate, at +358 10 618 0297, luca.delorenzo@nib.int

Mr Jukka Ahonen, Head of Communications, at +358 10 618 0295, jukka.ahonen@nib.int