9 Jun 2022

NIB launches its second GBP benchmark of the year

On 8 June, NIB priced a four-year GBP 350 million benchmark bond. The transaction is the Bank’s second GBP denominated benchmark in 2022, following the GBP 500 million Jun-2025 benchmark issued in January.

The transaction was supported by a well-diversified and high quality orderbook, resulting in a higher final issue amount than the initial size target of GBP 250 million. The bond was priced 57 basis points over the maturity-matched UK government bond, in line with initial guidance.

“The GBP market is in a very different state compared to the beginning of the year when we launched our first transaction. Therefore, it took us some courage to move forward, but we were rewarded by a strong interest that allowed us to price a larger issue size than planned and attract new investors. We also believe that this is the result of an ongoing open dialogue with NIB’s investor base during these times of uncertainty,” says Jens Hellerup, Head of Funding & Investor Relations at NIB.

Investor interest for the bond came mainly from asset managers who took 50%, the remainder was evenly split between Bank Treasuries and Central Banks. In terms of geographical distribution, almost half of the orders went to European investors, nearly 40% to the UK based accounts, and the rest were distributed amongst Asia and North America based buyers.

Bond summary terms
Issuer:Nordic Investment Bank
Rating:Aaa / AAA by Moody’s / S&P
Issue amount:GBP 350 million
Coupon:2.375% p.a.
Launch date:08 June 2022
Settlement date:15 June 2022
Maturity date:22 July 2026
Re-offer spread:UKT +57bps
Listing:London Stock Exchange
Joint lead managers:HSBC/Nomura/TD

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