NIB issues USD 500m benchmark Environmental Bond

On 23 September 2014, NIB launched its inaugural USD 500 million benchmark environmental bond. The transaction proceeds will be used to finance projects with a positive impact on the environment in the Nordic countries. The security offered by this triple-A supranational has received a strong response in the capital market.

This benchmark bond of USD 500 million is the largest issue under the NIB Environmental Bond programme. With a maturity of seven years, it also is the longest USD-denominated green bond from a supranational issuer to date. The bond pays a semi-annual coupon of 2.25% p.a. Bank of America Merrill Lynch, Crédit Agricole CIB and SEB jointly acted as the lead managers of the transaction.

The deal further promotes the Bank’s sustainable investment offering. The rapidly growing order book reflects the keen interest in the deal representing the market’s commitment to the values of socially responsible investment. Within a short period, the order book reached over USD 800 million attracting strong demand predominantly from investors with an interest in supporting climate-friendly projects within their investment mandates.

“The success of the deal proves there is substantial demand for environmental bonds, a market NIB has been active in since 2011. A growing number of fixed-income investors choose to target environmental challenges and support projects with a positive environmental impact. The investors in the NIB Environmental Bond are supporting environmental projects in the Nordic-Baltic region and benefitting from the Bank’s triple-A credit rating”, says Henrik Normann, President & CEO of NIB.

As an international financial institution with an explicit environmental mandate, NIB finances the implementation of projects within renewable energy production, energy efficiency in buildings, biofuel- and electricity-based transport, and wastewater treatment.

“With this transaction, the Bank was able to attract socially responsible investors. Over a third of the investors bought NIB for the first time in the primary market, so we are very happy to broaden our investor base”, says Jens Hellerup, Head of Funding and Investor Relations at NIB.

Projects co-funded with the proceeds from the NIB Environmental Bond programme are presented here.

More details of the transaction can be found in the lead banks’ press release (PDF).

For more information, please contact:

Mr Jens Hellerup, Head of Funding and Investor Relations, at +358 9 6181 1401