23 Jun 2020

NIB returns to Kauri market after two-year absence

On 23 June, NIB issued its first Kauri bond in two years. The five-year, NZD 400 million issue was arranged by ANZ and BNZ, and will result in 100 new kauri trees being planted on the Coromandel Peninsula east of Auckland.

“We are pleased to be back in the Kauri market after two years of absence. In terms of distribution, domestic investors made up 94%, which is a great response. The issue not only allows us to reach out to new investors and to diversify our investor base, but also to support BNZ’s environmental initiative”, says Jens Hellerup, Head of Funding and Investor Relations at NIB.

When New Zealand’s Kauri bond market first emerged in 2007, lead manager BNZ committed to planting 100 kauri trees for every transaction they arranged, in cooperation with the Kauri2000 Trust. Today, BNZ is responsible for several thousand kauri trees on the country’s North Island.

The issuer terms sheet on the transaction can be found here. (PDF)

Bond summary terms  
Issuer: Nordic Investment Bank
Rating: Aaa / AAA by Moody's / S&P
Issue amount: NZD 400 million
Coupon: 0.75%, p.a.
Launch date: 22 June 2020
Payment date: 23 June 2020
Maturity date: 7 July 2025
Re-offer spread: MS +43 bsp
Joint lead managers: ANZ, BNZ