19 Sep 2019

NIB launches 7-year EUR 500 million environmental bond

On 18 September, NIB launched a 7-year EUR 500 million NIB Environmental Bond (NEB), due September 2026. 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 sustainable projects.

The transaction represents NIB’s second environmental bond issue of 2019. The proceeds of the bond will be used for financing selected loans to projects that are considered to benefit the environment of a member country of NIB or the EU.

A high-quality green order book of more than EUR 750 million, with green investors representing the majority of the demand, enabled the transaction to price 2bps through the secondary curve.

The issuance confirms NIB’s position as the largest Nordic issuer of green bonds, and was driven by high levels of demand from investors that focus on ESG (environmental, social and governance). In terms of geographical breakdown, Benelux and French investors took the greatest share at 23% and 20% respectively, followed by Asian (17%) and UK investors (9%). By investor type, the largest share went to fund managers with 33%, private banks with 29%, central banks/official institutions with 20% and pension and insurance funds with 18%.

“With an order book of more than EUR 750 million from quality green investors, we are very pleased to see how NIB’s environmental mandate and projects appeal to investors. This is very inspiring and motivates us to continue to develop our Environmental Bond Framework”, says Jens Hellerup, Head of Funding and Investor Relations at NIB.

“Another fantastic outcome for NIB in the EUR green bond market continuing its trend of issuing successful EUR environmental bond benchmarks. The competitive pricing along with the high quality order book, with strong participation from dedicated SRI investors, reinforces the Nordic Investments Bank’s position as one of the leading SSA green bond issuers. Danske Bank is delighted to have worked together with the Nordic Investment Bank to further expand their already grand contribution to the Green Bond market by issuing their 5th EUR benchmark Environmental Bond”, says Gustav Landström, Global Head of SSA Origination at Danske Bank.

“With the success of this fifth annual Euro-denominated Environmental Bond, NIB re-affirms its leadership in the Green Bond market. NIB is a relatively rare visitor to the Euro capital markets, but the quality of this order book and the pricing they achieve relative to their peers is a testament to the investor appeal of NIB’s Environmental Bond programme. Citi was delighted to be part of this transaction”, says Philip Brown, Head of Public Sector & Green and Sustainable Capital Markets at Citi.

Read more:

Investor relations
NIB Environmental Bonds

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

Bond summary  
Issuer: Nordic Investment Bank
Rating: Aaa/ AAA (Moody's / S&P)
Issue amount:  EUR 500 million
Denomination: EUR 1,000
Settlement date: 25 September 2019
Coupon: 0% (Act/Act ICMA; Annual; Payable in arrears on 25 September in each year commencing on 25 September 2020, Following, Unadjusted)
Maturity date: 25 September 2026
Re-offer spread: MS-14bps/DBR 0-000% August 2026 + 26.2bps
Re-offer price: 102.997%
Re-offer yield: -0.421% annual
Format: Reg S, Bearer, New Global Note
Listing: London Stock Exchange
Joint lead managers: BNP Paribas, Citi, Danske Bank
ISIN: XS2055786763

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