24 Jan 2018

NIB issues USD 1bn three-year global benchmark

On 23 January 2018, NIB priced a new 3-year global USD 1 billion benchmark issue. The transaction is NIB’s first public USD benchmark of the year.

The issue has a final maturity of 1 February 2021, pays a semi-annual coupon of 2.250% and has an issue price of 99.703%, to give a spread of +17.85 bps over the UST 2% due January 2021, equivalent to mid-swaps minus 2 bps.

The bond received a positive response from investors and the final order book stood above USD 1.5 billion, with almost 60 investors participating in the transaction. The majority of demand came from EMEA with 59% and the Americas with 38%. By investor type, central banks & official institutions led the way taking 63% of the final allocations, followed by asset managers with 19% and banks taking 15%.

“NIB displayed their trademark knack for perfect timing. Following the usual glut of January supply, they picked a quieter window in a buoyant market and reaped the pricing benefits. Printing at -1 would have been a great result but achieving -2 was spectacular. Accounts can't get enough of this rare but top quality name", says Alex Barnes, Head of SSA Syndicate at Citi.

“Considering the FED meeting and the Chinese holidays coming up, this week offered us a good opportunity with no direct competing supply and a good market backdrop. With an order book of over USD 1.5 billion and price guidelines tightening by 2 bps during the book building process, we are again pleased to see the international investor community supporting NIB’s funding programme”, says Jens Hellerup, Head of Funding and Investor Relations at Nordic Investment Bank.

See a joint press release on the bond transaction PDF here.

 

Distribution statistics

Bond Summary Terms  
Nordic Investment Bank  
Rating: Aaa / AAA (Moody’s / S&P) 
Issue amount: USD 1 billion (no-grow)
Pricing date: 23 January 2018
Settlement date: 1 February 2018
Coupon: 2.250% payable semi-annually
Maturity date: 1 February 2021
Reoffer spread: Mid swaps - 2 bps, UST 2% 01/21 + 17.85 bps
Reoffer price: 99.743%
Reoffer yield: 2.138% / 2.353% s.a.
Format: Global
Joint lead managers: BMO Capital Markets, Citi, J.P. Morgan, Nomura

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,