10 Oct 2019

NIB issues USD 1 billion three-year global benchmark

On 9 October, NIB priced a new global USD 1 billion benchmark issue. The transaction is the Bank’s tightest ever three-year USD benchmark, and was well-received with a final orderbook in excess of USD 1.35 billion from over thirty accounts.

The issue has a final maturity on 17 October 2022, pays a semi-annual coupon of 1.375% and has an issue price of 99.728%. The global orderbook ultimately closed with final demand coming in excess of USD 1.35 billion. Final pricing at MS +8bsp represented minimal to zero new issue concession to NIB’s outstanding USD benchmark curve.

The orderbook enjoyed high-quality demand from over thirty accounts. In terms of distribution, EMEA accounts took the majority of allocations (47%), supplemented by the Americas (28%) and Asia (25%).

In terms of investor type, banks led the way taking 54% of the final allocation, followed by central banks & official institutions with 34% and fund managers with 12%.

This is NIB’s second USD global transaction in 2019, following a 5-year USD 1 billion transaction in May. The Bank has now completed EUR 4.7 billion out of the EUR 5 billion funding programme for 2019.

“We are pleased with the outcome of this second benchmark of the year. Current market conditions are difficult for both investors and issuers, but I trust the transaction provided good value for all parties. We highly appreciate our loyal investor base, which again supported NIB’s funding programme and provided us with a successful transaction”, says Jens Hellerup, Head of Funding & Investor Relations at NIB.

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

Bond summary terms
Issuer: Nordic Investment Bank
Rating: Aaa / AAA by Moody's / S&P
Issue amount: USD 1 billion
Coupon: 1.375% semi-annual
Launch date: 9 October 2019
Payment date: 17 October 2019
Maturity date: 17 October 2022
Re-offer spread: MS + 8bsp | CT3 + 7.40bps
Joint lead managers: HSBC, JPM, RBC CM (B&D), TD
ISIN: US65562QBM69

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, jens.hellerup@nib.int