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