5 Dec 2019
EUR 20 million
Financial institutions and SMEs
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.
|Issuer:||Nordic Investment Bank|
|Rating:||Aaa / AAA by Moody's / S&P|
|Issue amount:||USD 1 billion|
|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|
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, email@example.com