17 Sep 2020
EUR 24.77 million
Financial institutions and SMEs
On 3 September, NIB priced a new five-year global USD 1.5 billion benchmark issue. The transaction was NIB’s largest ever five-year USD benchmark, with the final orderbook reaching over USD 2.15 billion.
“We are very pleased with the support the investor community has shown NIB once again in this transaction. We decided to take advantage of conductive market conditions and a favourable window this week, ahead of an expected heavy supply pipeline. The book reached USD 2.1bn and the bond priced tighter from initial price guidance. This is an affirmation of investors recognising NIB’s enduring presence in the USD benchmark market,” says Jens Hellerup, Senior Director, Head of Funding & Investor Relations at NIB.
The transaction had a broad distribution across geographies and investor types, with over 50 investors participating. The strongest demand came from banks, receiving 50% of the final allocations, followed by central banks & official institutions with 24% and funding managers with 23%.
In terms of geographical distribution, the Americas had the highest allocations at 48%, the EMEA region had 32% and Asia had 20%.
This was NIB’s second USD global benchmark of this year. The issue has a final maturity of 11 September 2025, pays a semi-annual coupon of 0.375% and has an issue price of 99.926%. Joint lead managers for this global transaction are Citi, HSBC, Morgan Stanley, RBC CM.
“Citi was delighted to be appointed book runner for NIB's second USD benchmark in 2020. The pricing outcome at the very tight end of the recent supra transaction reinforces NIB's reputation in the market as the most highly sought-after name. We were particularly impressed by the high quality order book, which allowed for a USD 1.5bn issue size. Congratulations for an outstanding success,” says Ebba Wexler, Director, Public Sector DCM at Citi.
See a joint press release on the bond transaction (PDF)
|Bond summary terms|
|Issuer:||Nordic Investment Bank|
|Rating:||Aaa / AAA by Moody's / S&P|
|Issue amount:||USD 1,500 million|
|Launch date:||03 September 2020|
|Payment date:||11 September 2020|
|Maturity date:||11 September 2025|
|Re-offer spread:||MS +9bps|
|Joint lead managers:||Citi, HSBC, Morgan Stanley, RBC CM|
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
Ms Angela Brusas, Director, Funding and Investor Relations, at +358 961 811 403, firstname.lastname@example.org
Mr Alexander Ruf, Director, Funding and Investor Relations, at +358 961 811 402, email@example.com