Record high demand for NIB’s USD global benchmark

On 7 March, NIB priced a five-year USD 1.5 billion global benchmark bond, its first USD benchmark of the year. The transaction is NIB’s largest USD orderbook to date and the tightest SOFR MS spread in the 5-year SSA segment in 2023 so far.

The issue enjoyed a high-quality demand with over 100 accounts participating, ultimately resulting in final orderbook of more than USD 4 billion – the largest ever for NIB. It was priced with a spread of 11.15 basis points over the UST 4.000% 29 February 2028 Treasury note, equivalent to SOFR MS plus 30 basis points.

“Just one week ago we published our Annual Report for 2022, for the first time combining our financials and our impact in one publication. Having a record number of investors engaged in our new USD 5-year benchmark shows that NIB’s mandate and mission continue to be an attractive investment proposition to international investors. This transaction is a great achievement for everybody at NIB,” says Kim Skov Jensen, Vice-President, CFO at NIB.

In terms of investor participation, geographical distribution was mainly dominated by EMEA issuers at 58%, followed by Americas at 22% and APAC at 20%. In terms of investor type, Banks took the largest share of the allocations with 48%, followed by Central Banks and Official Institutions at 34%, Asset managers at 13% and Others at 5%.

“We are very happy with the issuance that had a record amount of investors – both in terms of number and size – more than 100 different accounts made up an orderbook in excess of USD 4 billion. We saw a good window after a period of less active primary markets and the publication of our annual figures. The yearly 5-year USD benchmark transaction represents an important strategic part of our funding program, and the outcome proves that NIB has a strong name in the international investor community,” says Jens Hellerup, Head of Funding & Investor Relations at NIB.

BMO Capital Markets, BofA Securities, Nomura, RBC Capital Markets are joint lead managers of the transaction.

”An incredibly well-timed and successful transaction for NIB, reacting swiftly to the excellent market conditions to price the tightest 5-year USD benchmark versus SOFR mid-swaps this year. Attracting demand in excess of USD 4 billion (inc. USD 50 million JLM), the issuer’s largest ever orderbook, is a reflection of NIB’s credit quality and high standing amongst global investors. A really great outcome and RBC was delighted to have been involved,” says Andrea Jelic, Director at RBC Capital Markets.

See a joint press release on the bond transaction.

Bond summary
Issuer:	Nordic Investment Bank
Rating:	Aaa / AAA by Moody’s / S&P
Issue amount:	USD 1.5 billion
Coupon:	4.375% Semi Annual, Fixed
Launch date:	7 March 2023
Payment date:	14 March 2023
Maturity date:	14 March 2028
Spread:	SOFR MS + 30bps | UST 4.000% 02/28 +11.15bps
Issue price:	99.911%
Listing:	Luxembourg Stock Exchange’s Regulated Market
Joint lead managers:	BMO Capital Markets, BofA Securities, Nomura, RBC Capital Markets
ISIN:	US65562QBW42

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