NIB launches a new global USD 1.25bn benchmark

On 18 February, NIB priced a new 3-year global USD 1.25 billion benchmark transaction. The final high-quality order book was oversubscribed and with 50 investors participating.

The issue has a final maturity of 25 February 2019, pays a semi-annual coupon of 1.125% and has an issue price of 99.997% to give a spread of +22.45 basis points over the UST 0.75% due February 2019; equivalent to 22 bps over midswaps.

The transaction received strong demand from high-quality investors. The order book was oversubscribed closed at over USD 1.7 billion, with 50 investors participating in the transaction. Bank treasuries accounted for the largest share of demand, 56%, and central banks and official institutions for 28% of the order book. Geographically, distribution was strongest in EMEA that accounted for 50%. Investors in the Americas subscribed to 31% and in Asia Pacific to 19%.

“This top-notch transaction from NIB offers just the right combination of scarcity, credit quality and ongoing liquidity that investors are looking for in this market. Timing and the choice of maturity were spot-on and the bonds will no doubt enjoy good secondary performance going forward”, says PJ Bye, Global Head of Public Sector Syndicate at HSBC.

“NIB’s first US dollar offering of 2016 has once again demonstrated the broad appeal of this rare credit. With market volatility remaining at elevated levels, NIB ensured broad participation and competitive pricing”, says Spencer Dove, Managing Director Public Sector DCM at Nomura.

“NIB greatly appreciates the strong support the investor community has shown us once again with this transaction. It was very satisfying for us to be able to tighten price and upsize the deal after the recent volatility”, 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 1.25 billion
Issue date:	18 February 2016
Pricing date:	18 February 2016
Settlement date:	25 February 2016
Coupon:	1.125% payable semi-annually
Maturity date:	25 February 2019
Reoffer spread:	Mid swaps + 22 bps, UST 0.75% 02/19 + 22.45 bps
Reoffer price:	99.997%
Reoffer yield:	1.126% s.a.
Format:	Global
Joint lead managers:	Citi, HSBC, Nomura, 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, mixIt(‘jens.h’,’ellerup’,’nib.i’,’nt’,”,’1455872750649-1′);jens.hellerup (at) nib.int