16 Jan 2024

NIB opens 2024 Kauri Market with NZD 600 million bond

On 15 January, NIB issued a new five-year fixed-rate NZD 600 million Kauri bond. This transaction solidifies NIB’s return to the Kauri Market and follows the recent recognition of the Bank as the ‘Kauri Issuer of the Year’ at the KangaNews 2023 awards.

The benchmark bond was launched with an initial minimum target size of NZD 300 million and was doubled due to strong investor demand. The new Kauri bond, with a volume of NZD 600 million has a fixed coupon rate of 4.5% and an issue price of 99.672580%, resulting in an issue yield of 4.574%.

The joint-lead managers for the transaction are ANZ, Commonwealth Bank of Australia, and Westpac.

“This latest issuance demonstrates NIB’s gravitas as an NZD issuer, with continued interest from New Zealand investors in our bonds,” says Jens Hellerup, Head of Funding and Investor Relations at NIB. “Having raised approximately EUR 6.5 billion in the Kauri market, we are now positioned as the fourth largest issuer in this segment.”

Kauri bonds are issued by foreign entities in New Zealand dollars to local investors. NIB has been a consistent participant in the Kauri market, winning the KangaNews ‘Kauri Issuer of the Year’ award four times since 2007. This reflects NIB’s commitment to the New Zealand dollar bond market.

“The Kauri market continues to play an important role in our funding strategy allowing us to increase the diversity of the products we make available to our investors globally,” says Kim Skov Jensen, NIB’s Vice President & CFO.

Read about the Funding outlook for 2024.

Bond summary terms:
Issuer:Nordic Investment Bank
Rating:Aaa / AAA by Moody’s / S&P
Issue amount:NZD 600 million
Coupon:4.50% per annum, Fixed, Semi-annual
Launch date:15 January 2024
Payment date:30 January 2024
Maturity date:30 January 2029
Listing:No listing
Lead manager:ANZ Bank New Zealand Limited, Commonwealth Bank of Australia and Westpac Banking Corporation (acting through its New Zealand branch)

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