12 May 2017
NIB increases EUR 500 million NEB 2024 to EUR 1 billion
On Thursday 11 May, NIB increased the NIB Environmental Bond (NEB) 2024 by EUR 500 million to EUR 1 billion to support lending to selected environmental projects. In accordance with NIB’s Environmental Bond Framework, the use of proceeds from this transaction will be allocated to a separate portfolio for onward disbursement of loans to new environmental projects. NIB does not refinance existing project with NEB proceeds.
This transaction makes the NEB due 2024, NIB’s biggest outstanding environmental bond. The issue will finance environmental projects that are mainly located in the Nordic region, and that fulfil the standards of NIB’s Environmental Bond Framework.
The transaction attracted strong interest from dedicated green investors and committed mainstream accounts. The order book exceeded EUR 650 million when the spread was fixed at a price of mid-swaps minus 25 basis points.
“Investors benefit from NIB’s thorough assessment of green projects, and we believe their investments make an important positive contribution to the society and to mitigate climate change. By tapping an existing NIB Environmental Bond, we offer investors a larger and more liquid green bond benchmark, which will contribute to the further development of the green bond market and enhance NIB’s euro bond pricing in the secondary market”, says Lars Eibeholm, Vice-President, Head of Treasury, at NIB.
“We are very pleased to see the green investors supporting the NIB Environmental Bond programme. Upsizing our 2024 NEB to EUR 1 billion highlights NIB’s focus to fulfil investors’ need for liquidity. It makes the bond more attractive in the secondary market. The bond was tapped flat to secondary level which reflects investors’ appreciation of NIB’s strong environmental credentials”, says Jens Hellerup, Senior Director, Head of Funding and Investor Relations, at NIB.
Read more:
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: | EUR 500 million, brings total outstanding amount to EUR 1 billion |
| Denomination: | EUR 1,000 |
| Settlement date: | 18 May 2017 |
| Coupon: | 0.125% |
| Maturity date: | 10 June 2024 |
| Reoffer spread: | Mid swaps -25 bps / DBR 1.750% February 2024 + 28.4 bps |
| Re-offer price: | 99.14% |
| Re-offer yield: | 0.248% |
| Format: | RegS |
| Listing | London Stock Exchange |
| Joint lead managers: | Citi / Danske / Nordea |
| ISIN: | XS1615065833 to be fungible with XS1431730388 after 40 days |
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, //
Ms Angela Brusas, Senior Funding Manager, at +358 961 811 403, //
Mr Alexander Ruf, Director, Funding and Investor Relations, at +358 961 811 402, //