9 Dec 2020
Funding in 2020: Supporting NIB’s COVID-19 response
“NIB is in a very strong position to meet any challenges in 2021. The update of the NIB statutes has not only strengthened the relevance of NIB in the Nordic-Baltic region, but also means that we are more agile and flexible to meet challenges in the future”
Jens Hellerup
Senior Director, Head of Funding and Investor Relations at NIB
We issued two NIB Response Bonds one in March and one in April 2020: the first was a three-year EUR 1 billion bond and the second was a three-year SEK 4 billion bond. “We are pleased to see the reception of these bonds in the market as both deals were significantly oversubscribed. This is a clear signal that the global investor base is looking for more than risk and return. Impact also matters”, says Mr Hellerup. Despite the sudden impact of the COVID-19 pandemic on the funding plan, the funding team also managed to carry out the original funding strategy for the year. This includes the issuance of global USD benchmark bonds and NIB Environmental Bonds under the NIB Environmental Bond Framework. In May, the Bank issued a three-year USD 1.5 billion global benchmark and further a USD 1.5 billion bond in September with a five-year maturity, both of which attracted strong support in excess of USD 2.75 billion and USD 2.2 billion, respectively. “Both transactions attracted new investors. Central banks and bank treasuries remain the main investor bases, but both asset managers and pension and insurance have become more important”, Mr Hellerup says. The Nordic Investment Bank continues to have a strong presence in the sustainable bond market. During 2020, the Bank raised a total of EUR 643 million under the NEB programme, consisting of a seven-year EUR 500 million NIB Environmental Bond and a five-year SEK 1.5 billion Nordic–Baltic Blue Bond. During 2011-2020, NIB has issued a total of EUR 4.9 billion equivalent in NIB Environmental Bonds under its environmental bond framework. “Although short-term and immediate response to the current crisis is important, we find it crucial to also continue with our long-term sustainable finance strategy, such as addressing climate change challenges’, says Mr Hellerup. Transactions in other public markets during the year consisted of bonds denominated in GBP, NZD, NOK, and SEK. Public market transactions were complemented with private placement transactions. For a full list of funding transactions, please click here.