NIB launches inaugural DKK 2 billion Environmental Bond

On 20 January, NIB launched an 8-year DKK 2 billion Environmental Bond (NEB). The transaction is NIB’s first ever green bond denominated in Danish kroner, making it the 8th currency issued under the NEB Framework.

The launch follows the issuance of the inaugural DKK denominated Green Government Bond from the Kingdom of Denmark on 19 January, which mobilised the attention in the Danish green investor base.

NIB’s transaction was met with strong demand from the outset, with orderbooks ultimately closing in excess of DKK 2.2 billion. Building on the great reception, the Bank was able to price the issue at MS -33.5 bps and a historically tight spread to Danish Government bonds. The transaction was driven by domestic ESG focused investors – 48% was placed with Pension and Insurance companies and 52% went to Fund Managers.

“NIB is pleased to have issued our inaugural NIB Environmental Bond denominated in DKK, shortly after the very successful inaugural green bond from the Kingdom of Denmark. NIB’s transaction enjoyed strong support from domestic investors, which is a proof of the continuously growing interest in sustainable investments in Denmark,” says Jens Hellerup, Head of Funding and Investor Relations at NIB.

In October 2021, the Bank also issued a 5-year SEK 3 billion NEB, and a 6-year NOK 1 billion NEB to mark its 10th anniversary as a green bond issuer.

“With the latest trade, NIB has issued Environmental Bonds in the three major Nordic currencies in a short time and we see this as a contribution to the further development of sustainable financial markets in our region,” says Kim Skov Jensen, Vice-President and CFO at NIB.

Joint lead managers for this transaction are Danske Bank and SEB.

“This inaugural 2 billion Danish kroner Green Bond from NIB is a great statement allowing NIB to raise sustainable funding in one of its core member countries. The deal emphasises NIB’s ability to act swiftly and to provide high quality Green Bonds to the growing Danish Green Bond investor community,” says Lars Eibeholm, Head of Sustainable Banking, Denmark, at SEB.

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

In accordance with NIB’s Environmental Bond Framework, the use of proceeds from this NEB transaction will be used for financing selected loan projects, which are considered to benefit the environment in NIB’s member countries.

For more information on NIB Environmental Bonds, click here.

Bond summary terms
Issuer:	Nordic Investment Bank
Rating:	Aaa / AAA by Moody’s / S&P
Issue amount:	DKK 2 billion
Coupon:	0.125%
Launch date:	20 January 2022
Payment date:	28 January 2022
Maturity date:	28 January 2030
Re-offer price:	99.651%
Re-offer spread:	MS -33.5 bps
Listing:	Nasdaq Copenhagen
Joint lead managers:	Danske Bank, SEB
ISIN:	XS2437424398

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