3 Feb 2023
NIB makes a strong return to the Kauri market
On 2 February, NIB returned to the Kauri bond market with a seven-year NZD 700 million transaction. This is the Bank’s first Kauri bond in more than two years, and its reception shows that the demand from Kiwi investors for NIB’s issuances is as strong as ever.
“It’s good to be back in the Kauri market! NIB is a well and long-established issuer in New Zealand with a loyal domestic investor base. So despite it took us almost three years since the previous issuance, the bond had a good demand. With an NZD 775 million bond maturing in January, we were confident to offer a new seven-year bond. The result exceeded our expectations – NZD 700 million is the largest seven-year bond in almost two years,” says Jens Hellerup, Head of Funding and Investor Relations at NIB.
“NIB’s strategy is to have a diversified funding, which means attracting investors from different markets. NIB’s new Kauri bond is a good example of this strategy: almost all investors are from New Zealand. Typically, they don’t buy NIB bonds in any other currencies than NZD. It might not be obvious for a Nordic supranational bond issuer to be active in this market, but NIB has a strong name recognition amongst local investors, and we are grateful for their support,” says Kim Skov Jensen, NIB’s Vice President & CFO.
The deal has a fixed coupon of 4.875% and an issue price of 99.351309% to yield 4.484%. ANZ, Commonwealth Bank of Australia, Westpac were the lead managers for the transaction.
| Bond summary: | |
|---|---|
| Issuer: | Nordic Investment Bank |
| Rating: | Aaa / AAA by Moody’s / S&P |
| Issue amount: | NZD 700 million |
| Coupon: | 4.375%, fixed |
| Launch date: | 2 February 2023 |
| Pricing date: | 3 February 2023 |
| Payment date: | 21 February 2023 |
| Maturity date: | 21 February 2023 |
| Re-offer price: | 99.351309% |
| Issue yield: | 4.484% |
| Spread: | Mid swap +44bps | Yield 4.484% | NZGB 3% 20 April 2029 +65.15bps |
| Joint lead managers: | ANZ | CBA (B&D) | Westpac |
| ISIN: | NZNIBDT013C2 |
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, Senior Director, 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