25 Apr 2018

NIB launches 7.5-year EUR 500 million environmental bond

On Tuesday 24 April, NIB launched a 7.5 year EUR 500 million NIB Environmental Bond (NEB). 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 selected new environmental projects.

A high-quality order book of more than EUR 850 million with a strong representation of green investors, demonstrates the quality of NIB’s green bond framework. The oversubscription enabled the deal to price 2 basis points tighter than from the initial guidance.

The transaction was driven by strong ESG (environment, social and corporate governance) focused investors. In terms of the geographical breakdown, Benelux and Nordic investors were allocated over 65% of the transaction, followed by Asia (17%) and France (8.5%). By investor type, the largest share went to fund managers with 65%, central banks/official institutions with (26%), and private banks and bank treasuries (9%).

“A fantastic result for NIB, combining attractive pricing with a high quality oversubscribed order book. In particular, strong participation from Environmental, Social and Governance (ESG) accounts is a testament to the quality of NIB’s green bond framework”, says Adrien de Naurois, SSA Syndiate, at Bank of America Merrill Lynch.

“Being one of the pioneers and one of the largest issuer in the Green Bond market, NIB also provides the market with a best-in-class impact reporting. It is therefore no surprise to see this new transaction strongly supported by investors with active commitment to the Green Bond market”, says Tanguy Claquin, Head of Sustainable Banking, at Crédit Agricole CIB.

“Once again NIB receives an outstanding reception for its Environmental Bond, in terms of pricing outcome, oversubscription, and sustainable investor participation. Investors clearly value the opportunity to support NIB’s quest in furthering the sustainable global development, which again is illustrated by NIB’s explicit environmental mandate from its shareholders and being an elected member of the Green Bond Principles Executive Committee”, says Kamal Grossard-Amin, Head of SSA DCM, at Nordea.

“NIB is thrilled on how investors are supporting the NIB Environmental Bond program. It is encouraging to see that more than 50 investors supported this deal and nearly half of them bought NIB for the first time. The result shows that NIB’s environmental mandate and projects appeal to investors and will inspire us to continue our contribution to the development of the green bond market”, says Jens Hellerup, Head of Funding and Investor Relations, at NIB.

Read more:

Investor relations
NIB Environmental Bonds

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

Bond Summary
Nordic Investment Bank
Rating: Aaa / AAA (Moody’s / S&P)
Issue amount: EUR 500 million
Denomination: EUR 100,000 / EUR 1,000
Settlement date: 03 May 2018
Coupon: 0.500%
Maturity date: 03 November 2025
Reoffer spread: Mid swaps – 24 bps
Re-offer price: 99.656%
Re-offer yield: 0.547%
Format: RegS
Listing London Stock Exchange
Joint lead managers: BofA Merrill Lynch, Crédit Agricole CIB and Nordea
ISIN: XS1815070633

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, Director, Head of Funding and Investor Relations, at +358 961 811 401, jens.hellerup@nib.int

Ms Angela Brusas, Senior Funding Manager, at +358 961 811 403, angela.brusas@nib.int

Mr Alexander Ruf, Director, Funding and Investor Relations, at +358 961 811 402, alexander.ruf@nib.int