25 Feb 2021
EUR 30 million
Energy and water
On 13 January, NIB priced a new global USD 1.25 billion benchmark issue. The transaction is NIB's first USD benchmark in 2021, and marks the tightest spread for a five-year deal for the Bank against mid swap since 2014.
The issue has a final maturity on 21 January 2026, pays a semi-annual coupon of 0.500%, and has an issue price of 99.577%. The global orderbook ultimately closed with final demand coming in excess of USD 1.55 billion. Final pricing of MS+3bps ensured that the transaction priced with no new issuance concession.
The orderbook enjoyed high-quality demand with over 35 accounts participating. In terms of geographical breakdown, orders were well distributed with Asia taking 37%, Americas taking 33% and EMEA rounding of the total with 30%.
In terms of investors, Banks accounted for 46% of the final allocations, Central Banks & Official Institutions took 42%, Pension Funds, Insurance & Corporates had 7% and Fund Managers had 5%.
"We felt it was a great opportunity to bring the first USD benchmark of the year to the market, as there was limited competing supply from our peers and a stable market backdrop. With a broadly distributed USD 5-year benchmark to the International investor base and an upsized transaction, it was again a testimonial to NIB’s strong credit as well as our consistency and long term strategy to the capital market," says Jens Hellerup, Head of Funding & Investor Relations at NIB.
Joint lead managers for this global transaction are Barclays, HSBC, J.P. Morgan and Nomura. See a joint press release on the bond transaction PDF here.
|Issuer:||Nordic Investment Bank|
|Rating:||Aaa / AAA by Moody's / S&P|
|Issue amount:||USD 1.25 billion|
|Coupon:||0.500%, Fixed, Semi-annual, 30/360|
|Launch date:||13 January 2021|
|Payment date:||21 January 2021|
|Maturity date:||21 January 2026|
|Re-offer spread:||MS + 3bps | UST 0.375% 12/25 +10.625bps|
|Joint lead managers:||Barclays, HSBC, J.P. Morgan, Nomura|
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