NIB’s new global benchmark re-opens USD market
23 Sep 2015
NIB’s new global benchmark re-opens USD market
NIB yesterday priced a new 5-year global USD benchmark transaction. This is NIB’s second US dollar-denominated public benchmark of 2015 and follows the USD 1.25 billion three-year priced in March.
The issue has a final maturity of 29 September 2020, pays a semi-annual coupon of 1.5 per cent and has an issue price of 99.669 per cent to give a spread of +12 basis points over the UST 1.375 per cent due August 2020, equivalent to 6 basis points over midswaps.
The transaction received strong investor demand from the outset. The final book was over USD 1.8 billion, with 45 investors participating in the transaction. Bank treasuries accounted for the largest share of demand (52 per cent), while strong interest also came from central banks and official institutions (35 per cent). In terms of geography, distribution was spread across all major centers with EMEA 56 per cent, the Americas 34 per cent and Asia Pacific 10 per cent.
“The NIB has timed the market perfectly in responding to demand with this new global benchmark offering. Rapid orderbook development was characterised by high quality interest, as well as granular orders from a diverse investor base. The impeccable execution and pricing is a testament to the NIB team”, says Kerr Finlayson, Director, SSA Syndicate at RBC.
“The USD SSA benchmark market needed a rare issuer of the highest quality to provide a pricing reference point and to reignite confidence in the whole sector. NIB has done this”, says Paul Eustace, Managing Director Syndicate at TD.
“The market shows a strong support to NIB’s new five-year deal given the market has been closed for the past three weeks. We paid very little new issue premium for this benchmark which is, I believe, a testimony of investors recognising NIB’s enduring presence in the USD benchmark market”, says Jens Hellerup, Head of Funding and Investor Relations at NIB.
See a joint press release on the bond transaction PDF here.
| Bond Summary Terms | |
| Nordic Investment Bank | |
| Rating: | Aaa / AAA (Moody’s / S&P) |
| Issue amount: | USD 1 billion |
| Issue date: | 21 September 2015 |
| Pricing date: | 22 September 2015 |
| Settlement date: | 29 September 2015 |
| Coupon: | 1.50% payable semi-annually |
| Maturity date: | 29 September 2020 |
| Reoffer spread: | Mid swaps + 6 bps, UST 1.375% 08/19 + 12 bps |
| Reoffer price: | 99.669% |
| Reoffer yield: | 1.569% s.a. |
| Format: | Global |
| Joint lead managers: | J.P.Morgan, RBC, TD Securities |
| Co-lead managers: | ANZ, Nomura and Standard Chartered |
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, mixIt(‘jens.heller’,’up’,’nib’,’.int’,”,’1443005094164-1′);jens.hellerup (at) nib.int