14 Jan 2021

NIB issues five-year USD 1.25 billion global benchmark

On 13 January, NIB priced a new global USD 1.25 billion benchmark issue. The transaction is NIB’s first USD benchmark in 2021, and marks the tightest spread for a five-year deal for the Bank against mid swap since 2014.

The issue has a final maturity on 21 January 2026, pays a semi-annual coupon of 0.500%, and has an issue price of 99.577%. The global orderbook ultimately closed with final demand coming in excess of USD 1.55 billion. Final pricing of MS+3bps ensured that the transaction priced with no new issuance concession.

The orderbook enjoyed high-quality demand with over 35 accounts participating. In terms of geographical breakdown, orders were well distributed with Asia taking 37%, Americas taking 33% and EMEA rounding of the total with 30%.

In terms of investors, Banks accounted for 46% of the final allocations, Central Banks & Official Institutions took 42%, Pension Funds, Insurance & Corporates had 7% and Fund Managers had 5%.

“We felt it was a great opportunity to bring the first USD benchmark of the year to the market, as there was limited competing supply from our peers and a stable market backdrop. With a broadly distributed USD 5-year benchmark to the International investor base and an upsized transaction, it was again a testimonial to NIB’s strong credit as well as our consistency and long term strategy to the capital market,” says Jens Hellerup, Head of Funding & Investor Relations at NIB.

Joint lead managers for this global transaction are Barclays, HSBC, J.P. Morgan and Nomura. See a joint press release on the bond transaction PDF here.

Bond summary terms
Issuer: Nordic Investment Bank
Rating: Aaa / AAA by Moody’s / S&P
Issue amount: USD 1.25 billion
Coupon: 0.500%, Fixed, Semi-annual, 30/360
Launch date: 13 January 2021
Payment date: 21 January 2021
Maturity date: 21 January 2026
Re-offer spread: MS + 3bps | UST 0.375% 12/25 +10.625bps
Joint lead managers: Barclays, HSBC, J.P. Morgan, Nomura
ISIN: US65562QBQ73

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, jens.hellerup@nib.int

Ms Angela Brusas, Director, Funding and Investor Relations, at +358 961 811 403, angela.brusas@nib.int

Mr Alexander Ruf, Director, Funding and Investor Relations, at +358 961 811 402, alexander.ruf@nib.int