18 Oct 2022

NIB launches five-year SEK 2 billion Environmental Bond

On 17 October, NIB launched a five-year SEK 2 billion Environmental Bond (NEB). This is the Bank’s third NEB of the year, following earlier issuances in DKK and EUR. With this transaction, NIB has issued environmental bonds in an amount close to EUR 1 billion in 2022 – this is the Bank’s highest green bond issuance over a course of one year.

NIB’s third environmental bond of the year was met with a good reception, with orderbooks ultimately closing in more than SEK 2.1 billion. The issue is due on 24 October 2027 and pays an annual coupon of 3.250%.

“Despite turbulent times in the markets, the demand for sustainable bonds remains high in the Nordics. We are pleased to satisfy this demand with a successful transaction that not only raised interest from our loyal investor base, but also attracted new investors on board. This is a testimony that accelerating the green transition is high on the agenda in our region,” says Jens Hellerup, Head of Funding & Investor Relations at NIB.

“Through our investment in NIB’s environmental bond we continue to support the sustainable transition of the Nordic-Baltic region. Given the current energy crisis, we value allocation to renewable energy and clean transportation in particular. Projects that further reduce societies’ dependence on fossil fuels are very important these days. This issuance also mirrors our ambitions linked to sustainable value creation, generating financial returns as well as sustainable impact,” says Kristofer Dreiman, Head of Responsible Investment at Länsförsäkringar Liv.

“As AP7 expands investments in green bonds within AP7 Räntefond, Nordic Investment Bank has been an outstanding partner to work with to combine good risk adjusted return with the opportunity to supply green financing to the Nordics. We are grateful for the good cooperation that takes place in line with AP7’s Climate Action Plan to contribute to reaching net zero emissions globally by 2050,” says Pontus von Essen, Head of Strategy AP7.

Länsförsäkringar Liv and AP7 drove the demand together with other domestic pension funds and insurance companies, as orders were also placed with AP3, Folksamgruppen, and others.

Nordea was the lead manager for this transaction.

“Even amidst a tough rates market backdrop, NIB once again demonstrated its leadership and respect among home Nordic investors by coming to the market with its latest NEB this week. Even with scarcity of supply over the past few month, not to mention market volatility making the price discovery process tricky, NIB’s transaction was smooth and confidently executed. Another excellent outcome for one of the most established and well regarded issuers in the Swedish Krona market. We thank NIB for the vote of confidence and congratulate the whole funding team again for a fantastic transaction,” comments Kamal Grossard-Amin, Head of SSA at Nordea.

The proceeds from this transaction will be allocated to a separate portfolio for onward disbursement of loans to selected sustainable projects in the Nordic–Baltic region.

NIB reports on the impact for each project financed and the aggregated impact for the seven different financing categories. The impact tables as well as the list of all projects financed are available on the Bank’s website.

See more information on NIB Environmental Bonds.

Bond summary:

Issuer:Nordic Investment Bank
Rating:Aaa / AAA by Moody’s / S&P
Issue amount:SEK 2,000 million
Coupon:3.250% p.a.
Launch date:17 October 2022
Payment date:24 October 2022
Maturity date:24 October 2027
Re-offer price:99.728%
Re-offer yield:3.310% (Equivalent to SEK MS+12)
Listing:Nasdaq Stockholm
Lead manager:Nordea

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

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

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

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